Tech Mahindra to shell out Rs 2,889 cr for Satyam

Outbidding the engineering giant L&T, Tech Mahindra on Monday emerged the highest bidder for Satyam Computer and may have to shell out up to Rs 2,889 crore (Rs 28.89 billion) for acquiring a 51 per cent stake in the fraud-hit company.

Tech Mahindra offered Rs 58 for every 10-rupee share while L&T's bid price stood at Rs 45.90.

"The highest bidder is required to bring in Rs 1,756 crore (Rs 17.56 billion) for 31 per cent. The highest bidder would have to make the open offer for 20 per cent at the bid price of Rs 58 a share. So (in aggregate) that would be Rs 2,889 crore," Kiran

Karnik, chairman of the government-inducted board, said soon after completing the bidding process.

Karnik said the stand-still agreement with bidders prevents them from buying or selling Satyam's shares for six months. So L&T, which is a shareholder in the company, cannot sell its stake for the next six months, being privy to the key information during the bidding process.

The former Nasscom chairman said Tech Mahindra would be handed over ownership of the company as soon as it makes the payment for the 31 per cent stake and the CLB approval comes for its takeover.

He said Cognizant did not participate in the process and Wilbur Ross had quoted the share price at Rs 20 and L&T at Rs 45.90 a share.