Tech Mahindra Wins Bid to Acquire Satyam Computers

Tech Mahindra has emerged as the highest bidder to acquire Satyam Computer and will pay Rs 1,756 crore to buy a 31 % stake in the Satyam.

Tech Mahindra Ltd. (TechM) formerly known as Mahindra British Telecom (MBT) is an Indian Information Technology service provider company

Tech Mahindra would pay Rs 1,900 cr in the next 4 days for the 31 % stake in Satyam Computers and Satyam would operate as a special purpose vehicle until Tech Mahindra raises its stake to 51%. Tech Mahindra will invest Rs 1756 Crores ($351 millionn) at the exchange rate of 50 Rs/$.

On the news Satyam computers Share price had a rise by 8 % at the NSE

No other bid was within 90 % of Tech Mahindra’s bid.  Larsen and tourbo (L&T) bid was at Rs 46 per share and WL Ross bid for Rs 20/share.

“Pursuant to the Share Subscription Agreement, Tech Mahindra has agreed to subscribe to and acquire 30.27 crore shares at Rs 58 per share thereby agreeing to infuse Rs 1,756 crore (USD 351 million),” a Satyam statement said.

Spice Communications, IBM and iGate were the other 3 companies who dropped out of the race after showing an interest in bidding for Satyam.  Spice claimed that the bidding process lacked transparency and pulled out of the race.