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Rediff.com  » Business » Tech Mahindra completes Satyam stake acquisition

Tech Mahindra completes Satyam stake acquisition

May 05, 2009 18:58 IST
IT firm Satyam Computer on Tuesday said its new owner Tech Mahindra has completed the process for acquiring 31 per cent stake in the company.

In a filing to the BSE, Satyam said Tech Mahindra, via its subsidiary Venturbay Consultants, has been allotted 30,27,64,327 shares or 31 per cent stake in the firm.

Last month, Tech Mahindra had outbid others in the race to acquire a majority stake in the scam-tainted Satyam Computer, following which Venturbay had deposited Rs 1,756 crore (Rs 17.56 billion) in the escrow account as the subscription amount for the initial shares.

"Since the conditions precedent to the allotment of the initial shares have now been satisfied by the parties, the funds have been released from the escrow account to the

company's account. The company expects to use the fund for general corporate purposes, including repayment of certain existing loans," the filing added.

Consequent to the said allotment, the paid-up capital of the company has gone up to Rs 195.34 crore (Rs 1.95 billion), from Rs 134.79 crore (Rs 1.34 billion), it said.

Further, Tech Mahindra would be making a cash tender offer to the public shareholders for acquiring an additional 20 per cent, at a minimum of Rs 58 per share, which is scheduled to begin on June 12.

Tech Mahindra, in which BT Group Plc owns 31 per cent, has valued Satyam at about Rs 5,800 crore (Rs 58 billion).

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