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Tech Mahindra, declares open offer for Satyam shares

Wednesday, April 22, 2009 (12:09:39) Mumbai: After buying 31 percent of scam-tainted Satyam Computer Services, Tech Mahindra today announced an "open offer" to acquire a further 20 percent stake so that it can get a controlling stake. As per the next steps laid out by the Satyam board, Tech Mahindra announced the "open offer" to obtain 20 percent at Rs.58 per share for 199,079,413 shares of Satyam, the company said in a regulatory filing. The acquisition would be done by Venturebay Consultants, a subsidiary of Tech Mahindra. The offer will be open from June 12-July 1. The offer is not subject to any minimum level of acceptance. Tech Mahindra will acquire the 20 percent at a cost of Rs.115.4 billion ($231 million). Automobile major Mahindra and Mahindra owns about 44.18 percent equity in Tech Mahindra, with its joint venture partner British Telecommunications having a 30.98 percent stake in the company. The total promoter holding in the company is about 83.26 percent while the public and other institutions hold the rest. Kotak Mahindra Capital Company is the manager to the offer which comes after Tech Mahindra deposited $351 million for a 31 percent preferential allotment of new shares in an escrow account April 21. (IANS)