Highlights of Tech Mahindra’s winning bid for Satyam

April 13th, 2009 - 2:46 pm ICT by IANS  

Mumbai, April 13 (IANS) 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

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