New Delhi, July 01: Tech Mahindra's open offer for buying up to 20 per cent stake in Satyam Computer Services ended on Wednesday without any significant response from the shareholders.
The open offer for acquiring acquiring up to a 20 per
cent stake was made at a total investment of up to Rs 1,154
crore.
"Tech Mahindra has not received a significant response to
its tender offer to purchase 20 per cent of Satyam Computer
Services from the shareholders," Tech Mahindra's Chief
Financial Officer Sonjoy Anand said in a statement.
Tech Mahindra said in a regulatory filing "the final
number of shares tendered and accepted (including shares
underlying American Depository Shares) will be announced on or
about July 8, 2009."
In the event that the aggregate number of shares tendered
and accepted in the offer is less than the offer size, Tech
Mahindra intends to subscribe to additional Satyam shares so
that it matches the offer size, the company said.
Tech Mahindra would subscribe to the said additional
shares at a price of Rs 58 a piece, in accordance with the
share subscription agreement between Satyam and Tech Mahindra.
It is likely that Tech Mahindra would subscribe to the
fresh equity shares of Mahindra Satyam (the new name for
Satyam Computer) to raise its stake in the company from the
current 31 per cent.
The company will have to take further regulatory approval
to issue fresh equity shares by Satyam, which could take two
to three weeks.
The company added that the process of "calculating the
number of shares validly tendered and not withdrawn in the
tender offer, including shares underlying Satyam's American
Depository Shares," is being carried out by the registrar to
the offer, along with Tech Mahindra and some other agents.
Through Venturbay Consultant, Tech Mahindra's acquisition
vehicle for the Satyam Computer purchase, the Mahindra group
firm had announced an open offer on April 22 for buying an
additional 19.9 crore shares, amounting to a 20 per cent stake
from the shareholders of the IT firm.
The open offer was made after Tech Mahindra bought a 31
per cent stake in Satyam at Rs 1,756 crore through issuing
preferential shares after an auction process.
To fund future growth plans, Tech Mahindra is planning to
borrow up to Rs 3,000 crore and is also mulling a share sale
of 1.36 crore shares with institutional investors.
Bureau Report
First Published: Wednesday, July 01, 2009, 23:19