Highlights of Tech Mahindra’s winning bid for Satyam
By IANSMonday, April 13, 2009
MUMBAI - Following are the highlights of Tech Mahindra’s winning bid for a controlling stake the scam-hit Satyam Computer Services, which was approved by its board here Monday and notified to stock exchanges:
- Acquiring company: Venturbay Consultants Pvt Ltd, a Tech Mahindra subsidiary
- Price at which acquisition of 31-percent stake approved: Rs.58 per share
- Number of shares constituting 31 percent: 302,764,327
- Amount raised by way of 31-percent stake: Rs.1,756 crore ($351 million)
- Money to be deposited in an escrow account by April 21
- If not, next highest bidder will be considered
- Larsen and Toubro and consortium of Wilbur Ross-Cognizant were also in fray
- Tech Mahindra to make open offer of 20 percent at Rs.58 per share
- After open offer, total stake held cannot be more than 51 percent
- Subscribers of American depository shares also eligible for open offer
- Open offer to be made within 55 days
- Company Law Board exemption for shareholder approval on preferential offer
- Financial advisers: Goldman Sachs and Avendus Capital
- Satyam board says no other bidder within 90 percent of Tech Mahindra’s offer
- Satyam board and Tech Mahindra execute share subscription pact
- Two directors - Deepak Parikh and S.B. Mainak - abstained from decision
