Tech Mahindra's open offer for Satyam opens June 12
Posted on: 09:49 AM IST Apr 22, 2009
New Delhi: IT firm Tech Mahindra on Wednesday said its Rs 1,154.66-crore 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 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 in an escrow account for a 51 per cent controlling stake in Satyam Computer. Indian takeover regulations necessitates a company to make an open offer for a further 20 per cent stake in the target company, if its holding increases beyond 15 per cent.Tech Mahindra, in which BT Group Plc owns 31 per cent, has valued Satyam at about Rs 5,800 crore.Meanwhile, the American Depository Receipts (ADRs) of Satyam surged 6.56 per cent at USD 1.95 on the New York Stock Exchange yesterday.On the Bombay Stock Exchange, shares of Satyam settled with a near three per cent gain yesterday, in anticipation of the open offer from its new owner -- Tech Mahindra.On Tuesday, shares of Satyam ended the trade at Rs 48.95, up 2.94 per cent on the BSE. During the day, the scrip had touched a high of Rs 50.15.