Tech Mahindra's open offer to begin on June 12

IT firm Tech Mahindra on Wednesday said its Rs 1,154.66 crore (Rs 11.54 billion) open offer for an additional 20 per cent stake in Satyam Computer will begin on June 12 and close on July 1, 2009.

In a public announcement made to the shareholders of Satyam Computer, Tech Mahindra said that its open offer would start on June 12 and close on July 1, 2009.

"The acquirer (Tech Mahindra) proposes to acquire 19.90 crore (199 million) shares of the target company (Satyam) representing 20 per cent of the fully diluted share capital of the company at a price of Rs 58 a share," it said.

The maximum consideration payable under the open offer is Rs 1,154.66 crore. Pursuant to successful completion of the offer, Tech Mahindra's holding in Satyam would go up to 51 per cent.

Kotak Mahindra Capital made the announcement on behalf of Venturbay Consultants, a unit of Tech Mahindra. Last week, Tech Mahindra outbid others in the race to acquire a controlling stake in tainted Satyam Computer.

The government-appointed board of Satyam had given its approval for the acquisition of a 31 per cent stake by Tech Mahindra for Rs 1,756 crore.

The deal has also been approved by the Company Law Board. The company has already deposited Rs 2,910 crore (Rs 29.10 billion) in an escrow account for a 51 per cent controlling stake in Satyam Computer.