Tech Mahindra has won the bid for Satyam Computer Services. The long-drawn race finally drew to a close as it was confirmed that Tech Mahindra bid for Satyam at Rs 58 per share, while Larsen & Toubro, the other player in the fray, bid at Rs 49.50 per share.
Tech Mahindraï¿½s formalities
Tech Mahindra will have to pay Rs 1757 crore (USD 351 million)Â for 31% at Rs 58 per share, whereas for the total 51% stake the company will have to pay Rs 2,890 crore. The company will make an open offer at Rs 58 per share. American Depository Share (ADS) holders are expected to be able to take part in the open offer. The announcement of the open offer will happen within four working days of the Company Law Board (CLB) approval. Tech Mahindra will issue a public offer within 55 days of public announcement. The CLB said it will respond within 24 hours of Satyam filing affidavit. Satyam will now have a market capitalization of Rs 5,666 crore on expanded equity.
ï¿½Tech Mah has sufficient fundingï¿½
Sources in Tech Mahindra said there were no second thoughts on Satyam bid yet. The board meeting will happen on Sunday to consider the bid price. Sources further stated that there is no decision yet on partnering with private equityÂ (PE) firms. The company has offers from two PE firms for the joint bid. Sources also said that the company has sufficient funding to bid alone.