Bharucha to guide Satyam board on strategic investorMarch 13th, 2009 - 8:20 pm ICT by IANS
Hyderabad, March 13 (IANS) Former Supreme Court chief justice S.P. Bharucha will guide the Satyam Computer Services board in selecting the strategic investor from the Indian and overseas bidders, the scam-hit company said Friday.
“Justice Bharucha has agreed to oversee and guide the board in selecting the strategic investor,” the IT bellwether said in a statement after the board met here to discuss the expressions of interest (EoI), submitted by four bidders till Thursday.
The four bidders, which have shown interest in buying 51 percent majority stake in the software firm, are infrastructure major Larson and Toubro (L&T), Mahindra Group’s IT arm Tech Mahindra, B.K. Modi-controlled Spice Corp and iGATE Corp, headed by former Infosys sales and marketing head Phaneesh Murthy.
L&T holds 12 percent of the company’s equity.
The board has decided to release the request for proposals (RFP) to the bidders.
“The response so far has been adequate from Indian and international bidders, including private equity (PE) firms,” the statement noted.
Under the procedure, the bidders are required to submit their EoI along with proof of funds of Rs.15 billion (Rs.1,500 crore/$290 million) by March 20.
The bidders will have access to the company’s data and information to enable them to submit technical and financial bids.
Satyam chief executive A.S. Murty briefed the board on his recent visit to Singapore and Australia to meet clients and employees. He is scheduled to visit the US on a similar trip.
The software major has been mired in a controversy for the Rs.78-billion (Rs.7,800-crore) accounting fraud its founder B. Ramalinga Raju publicly admitted.
Raju Jan 7 confessed that he had cooked the company’s account books and inflated profits over the past several years.
Satyam March 9 invited registrations to start the selling process by way of a global auction after market regulator Securities and Exchange Board of India (SEBI) gave it the go-ahead March 6 to do so.
The government-nominated board will select the successful bidder after evaluating the bids and the successful bidder will be given four days to deposit with the company the entire subscription amount and the requisite funds for the public offer in an escrow account.
The strategic investor will also have to make a mandatory open public offer to purchase a minimum of 20 percent of the company’s share capital, as per the relaxed takeover norms prescribed by SEBI.
- Mahindra, L&T among contenders for Satyam (Roundup) - Mar 12, 2009
- Timeline of events surrounding Satyam Computer - Apr 13, 2009
- Satyam informs market regulator on bidding process - Mar 25, 2009
- Tech Mahindra gets control of Satyam Computer Services (Lead) - Apr 13, 2009
- Tech Mahindra gets Company Law Board nod for Satyam buy (Lead) - Apr 16, 2009
- Satyam board discusses expressions of interest by bidders - Mar 13, 2009
- Satyam starts procedure to sell 51 percent stake - Mar 09, 2009
- Stage set for Mahindra Satyam's merger - Mar 20, 2012
- Mahindra Satyam, Tech Mahindra Ltd merge - Mar 21, 2012
- Satyam allots 10,511 equity shares under stock option plans - Mar 17, 2009
- Tech Mahindra, Mahindra Satyam to merge (Lead) - Mar 21, 2012
- Satyam alerts prospective strategic investors on stake sale (Lead) - Mar 09, 2009
- Mahindra Satyam to acquire minority stake in Dion Global - Feb 10, 2012
- Satyam gets strategic investor, fresh lease of life (Roundup) - Apr 13, 2009
- UP invites investment for Lucknow IT park - Jun 14, 2012
Tags: account books, accounting fraud, arm tech, exchange board, expressions of interest, global auction, igate corp, international bidders, larson and toubro, mahindra group, majority stake, market regulator, murty, proof of funds, ramalinga, satyam computer services, securities and exchange board of india, spice corp, supreme court chief justice, tech mahindra