Satyam gets SEBI nod to sell 51 p.c shares

BANGALORE, INDIA: Satyam Computer Services, which is in a struggling stage following the confession of former chairman B.Ramalinga Raju about the financial frauds in the organization, announced today that it has received approval from market regulator Securities and Exchange Board of India (SEBI) to facilitate a global competitive bidding process, which contemplates the selection of an investor to acquire a 51 per cent interest in the company.

The selected investor will be issued equity shares representing 31 per cent of the company’s share capital and upon a successful closing of the subscription, the investor will be required to make a mandatory minimum public open offer to purchase a minimum of 20 per cent of the company's share capital, Satyam said in a press release.

The open offer will be made at the same share price as the price paid by the investor for the subscription, it added.

If upon the closing of the open offer, the investor fails to acquire 51 per cent of the share capital of the company through the subscription and the open offer, the investor would have the right to subscribe to additional newly issued equity shares.

The subsequent subscription, if any, will not result in requiring a further open offer, it added. There is a three-year lock-in period on the investor in accordance with the Indian law, said Satyam.

However, the investor would be able to subscribe for additional equity shares, the release added. Satyam said it will invite expressions of interest from qualified investors shortly in a global competitive bidding process.

Qualified investors are expected to have total net assets in excess of US$150 million, it added.