Tech Mahindra deposits funds for Satyam stake buy

April 20th, 2009 - 6:46 pm ICT by IANS  

Hyderabad, April 20 (IANS) Tech Mahindra, the IT arm of auto major Mahindra and Mahindra, Monday said it has deposited the amount needed for acquiring a majority stake in the fraud-hit Satyam Computer Services.
Venturbay Consultants, a subsidiary of Tech Mahindra, was to pay $351 million for a 31 percent preferential allotment of new shares and would then make an open offer for a further 20 percent of the company at a cost of about $231 million, a company statement said.

Under the share subscription agreement, signed by Tech Mahindra and Satyam’s government-appointed board, the outsourcing firm was to deposit the bid amount in an escrow account by April 21.

The company can now appoint four of its nominees as directors on Satyam’s board. However, the present six directors of Satyam will continue til the government makes further orders.

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