Satyam gets regulator’s nod to offload 51 percent stakeMarch 6th, 2009 - 1:29 pm ICT by IANS
Mumbai, March 6 (IANS) Scam-tainted Satyam Computer Services has received the nod from the India’s equities market regulator to begin the process of selling 51 percent stake in the company to a strategic investor through a “global competitive bidding process”, the firm said Friday.
In a statement to the bourses, Satyam said that it “received approval from the Securities and Exchange Board of India (SEBI) to facilitatte a global competitive bidding process which, subject to receipt of all approvals, contemplates the selection of an investor to acquire a 51 percent interest in the company”.
The bidding would involve a three-step process: a subscription of newly issued equity shares representing 31 percent of the company’s share capital, after which the investor would have to make a mandatory minimum public open offer to purchase a minimum of 20 percent of the company’s share capital.
“If upon the closing of the open offer, the investor would have acquired less than 51 percent of the company, the investor would have the right to subscribe to additional newly issued equity shares, such that the shares acquired by the investor through the three related steps, will result in the investor acquiring 51 percent of the company,” the statement added.
Satyam will soon invite interested parties, who meet the qualifying criteria of having total net assets in excess of $150 million, to participate in the bidding.
The B.K. Modi-controlled Spice group, infrastructure major Larsen and Toubro, which holds about 12 percent stake in the company, and the Hinduja group have all shown interest in acquiring Satyam.