Tech Mahindra wins Satyam

Scam-hit IT major Satyam has informed that its board of directors has selected Venturbay Consultants Pvt. Ltd., a subsidiary controlled by Tech Mahindra Ltd. as the highest bidder to acquire the controlling stake in the company.

However, the decision is yet subject to the approval of the Company Law Board (CLB).

Tech Mahindra, which is a joint venture between British Telecom and the Indian conglomerate Mahindra & Mahindra, today emerged as bid winner by bidding at Rs 58 per share, defeating bids of rivals viz. engineering firm Larsen & Toubro (Rs 45.90/share) and billionaire investor Wilbur Ross (Rs 20/share).

Just after declaration of result, Tech Mahindra has executed a share subscription agreement with the company, under which the company has agreed to subscribe to 30.28 crore shares of the company, representing 31% of the share capital of the company.

The company will infuse Rs 1757 crore into the company through equity shares, to acquire controlling stake at quoted price.

Reacting to latest development, market analysts said that latest acquisition deal will definitely help the company, to diversify into new areas instead of just depending on the telecom sector.

During intraday session, shares of Tech Mahindra today surged as much as 25 per cent on the BSE after the software firm emerged as the highest bidder. The scrip of the company finally settled the day at Rs 359, up 12% compared to previous close.