Satyam today found a new owner in industrial conglomerate Mahindras that outbid engineering giant L&T with an offer of Rs 58 a share -- entailing up to Rs 2,900 crore for majority stake in the scam-tainted IT company.
Emerging victorious, Anand Mahindra-led group's IT arm Tech Mahindra said it would fund the deal primarily through debt and assured best of services to Vikram Pandit of Citigroup, John Chambers of Cisco and other prized customers.
Having won the bid for 31 per cent stake, Tech Mahindra would make an offer for an additional 20 per cent stake within a week of getting clearances from Company Law Board, which had in January allowed the government to appoint a board to run the company thrown into crisis after its founder Ramalinga Raju disclosed a Rs 7,800 crore fraud.
"The highest bidder is required to bring in Rs 1,756 crore for 31 per cent... (and) would have to make the open offer for 20 per cent at the bid price of Rs 58 a share... That would be Rs 2,889 crore," said Kiran Karnik, Chairman of the Government-inducted board, announcing the outcome of the bids where American-billionaire investor Wilbur Ross making the third highest offer.
L&T, which had accumulated over 12 per cent stake in Satyam ahead of the bid, said that it wasn't disappointed and hoped that the new owner would add value for shareholders.
Investors gave a thumbs-up to Tech Mahindra with a 12 per cent increase in share price to Rs 359.45, while Satyam shares rose by about three per cent. PTI
Monday, April 13, 2009
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