ID :
55205
Mon, 04/13/2009 - 18:02
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Shortlink :
https://www.oananews.org//node/55205
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Tech Mahindra pays Rs 1,756 cr for 31 per cent stake in Satyam
Mumbai, Apr 13 (PTI) Tech Mahindra Monday emerged the
highest bidder to acquire India's beleaguered IT major Satyam
Computer and will pay Rs 1,756 crore to buy a 31 per cent
stake in the company.
The telecom software major has paid Rs 58 for a 10-rupee
share for subscribing to 30.27 crore shares of the fraud-hit
IT company, representing a 31 per cent stake of the total
share capital.
"Pursuant to the Share Subscription Agreement, Tech
Mahindra has agreed to subscribe to and acquire 30.27 crore
shares at Rs 58 per share thereby agreeing to infuse Rs 1,756
crore (USD 351 million)," a Satyam statement said.
Mumbai-based Tech Mahindra, where Mahindra and Mahindra
is a promoter with a majority stake and BT has 30 per cent, is
a key player in telecom software.
Commenting on the development, Tech Mahindra said its
subsidiary Venturebay Consultants has emerged as the highest
bidder to acquire a controlling stake in Satyam subject to the
approval of the Company Law Board.
Tech Mahindra's share was quoting 12.61 per cent up on
the bourses at Rs 360.40.
After getting CLB approval, Satyam Computer will ask Tech
Mahindra to make an open offer for another 20 per cent in the
company, which if fully subscribed in the first round, will
take its stake to 51 per cent. If not subscribed fully by the
existing shareholders, there could be a second round of open
offer.
Tech Mahindra is required to deposit the Initial
Subscription Amount and the requisite escrow amounts for the
Public Offer on or before April 21, 2009.
If Tech Mahindra desires to take control of the affairs
of the company simultaneously with the Preferential Allotment,
it will be required to deposit in escrow the total funds
necessary to consummate the Public Offer, Satyam said.
The company was administered by a new Board appointed
pursuant to the orders of the CLB dated January 9, 2009. The
process to select a strategic investor has reached this
significant stage within three months of the new Board’s first
meeting.
"On behalf of all Satyamites and their families, we
congratulate Tech Mahindra on being the highest bidder. The
selection of the highest bidder, in a fair, open and
transparent process, signals a new stage for the Company in
its progress towards stabilization and growth," Satyam said in
an announcement. PTI
highest bidder to acquire India's beleaguered IT major Satyam
Computer and will pay Rs 1,756 crore to buy a 31 per cent
stake in the company.
The telecom software major has paid Rs 58 for a 10-rupee
share for subscribing to 30.27 crore shares of the fraud-hit
IT company, representing a 31 per cent stake of the total
share capital.
"Pursuant to the Share Subscription Agreement, Tech
Mahindra has agreed to subscribe to and acquire 30.27 crore
shares at Rs 58 per share thereby agreeing to infuse Rs 1,756
crore (USD 351 million)," a Satyam statement said.
Mumbai-based Tech Mahindra, where Mahindra and Mahindra
is a promoter with a majority stake and BT has 30 per cent, is
a key player in telecom software.
Commenting on the development, Tech Mahindra said its
subsidiary Venturebay Consultants has emerged as the highest
bidder to acquire a controlling stake in Satyam subject to the
approval of the Company Law Board.
Tech Mahindra's share was quoting 12.61 per cent up on
the bourses at Rs 360.40.
After getting CLB approval, Satyam Computer will ask Tech
Mahindra to make an open offer for another 20 per cent in the
company, which if fully subscribed in the first round, will
take its stake to 51 per cent. If not subscribed fully by the
existing shareholders, there could be a second round of open
offer.
Tech Mahindra is required to deposit the Initial
Subscription Amount and the requisite escrow amounts for the
Public Offer on or before April 21, 2009.
If Tech Mahindra desires to take control of the affairs
of the company simultaneously with the Preferential Allotment,
it will be required to deposit in escrow the total funds
necessary to consummate the Public Offer, Satyam said.
The company was administered by a new Board appointed
pursuant to the orders of the CLB dated January 9, 2009. The
process to select a strategic investor has reached this
significant stage within three months of the new Board’s first
meeting.
"On behalf of all Satyamites and their families, we
congratulate Tech Mahindra on being the highest bidder. The
selection of the highest bidder, in a fair, open and
transparent process, signals a new stage for the Company in
its progress towards stabilization and growth," Satyam said in
an announcement. PTI
