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Rediff.com  » Business » Tech Mahindra to pay Rs 1,756 cr before deadline

Tech Mahindra to pay Rs 1,756 cr before deadline

April 16, 2009 19:43 IST
Tech Mahindra would pay Rs 1,756 crore (Rs 17.56 billion) before the deadline of April 21 for acquiring 31 per cent stake in Satyam Computer for which it got the approval from the Company Law Board on Thursday.

Sources in the company said it would pay the amount before April 21 and it has already arranged most of the funds required. The company has raised Rs 875 crore (Rs 8.75 billion)  from the debt market and has Rs 700 crore (Rs 7 billion) on its balance sheets. The rest of the amount needed, said sources, would be raised from internal resources.

"We are pleased with the honourable board's decision. This takes us one step closer to our objectives. We look forward to complete the next steps of the bid process," Vineet Nayyar, vice chairman and CEO of Tech Mahindra told PTI.

The CLB today approved takeover of Satyam Computer Services by Tech Mahindra for deal of Rs 58 a share which the company bid through auction.  Satyam was which was on the verge of collapse after its former founder B Ramalinga Raju admitted fraud running into several thousands of crores.

Tech Mahindra will also have to deposit the requisite escrow amount for the 20 per cent open offer in a separate account on or before April 21. The aggregate amount for 51 per cent stake in Sataym is Rs 2,889 crore (Rs 28.89 billion). It has to deposit Rs 1,133 crore (Rs 11.33 billion) in escrow account for the open offer.

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