CLB approves Tech Mahindra's bid for Satyam

NEW DELHI Thu Apr 16, 2009 6:01pm IST

Policemen walk inside the Satyam Computer Services head office in Hyderabad in this January 2009 file photo. Company Law Board (CLB) on Thursday approved the takeover of fraud-hit Satyam Computer Services Ltd by mid-sized outsourcer Tech Mahindra Ltd, as had been expected.  REUTERS/Krishnendu Halder

Policemen walk inside the Satyam Computer Services head office in Hyderabad in this January 2009 file photo. Company Law Board (CLB) on Thursday approved the takeover of fraud-hit Satyam Computer Services Ltd by mid-sized outsourcer Tech Mahindra Ltd, as had been expected.

Credit: Reuters/Krishnendu Halder

Related Topics

NEW DELHI (Reuters) - The Company Law Board (CLB) on Thursday approved the takeover of fraud-hit Satyam Computer Services Ltd by mid-sized outsourcer Tech Mahindra Ltd, as had been expected.

"Having convinced myself that the board of directors has selected a technically and financially competent/qualified strategic investor... I accept the recommendation," CLB chairman S. Balasubramanian said in a statement.

Tech Mahindra was the highest bidder for a controlling stake in Satyam on Monday. The deal will propel Tech Mahindra into the top tier of Indian IT firms and throw a lifeline to the firm at the centre of India's biggest corporate scandal.

Tech Mahindra, 31 percent owned by Britain's BT Group, will pay $351 million for a 31 percent preferential allotment of new shares in Satyam and will make an open offer for a further 20 percent at a cost of up to around $225 million.

The bid, in an auction conducted by the government-appointed board of Satyam, had to be approved by the Company Law Board. Analysts had the expected the deal to be approved.

Three months ago, Satyam's founder and chairman shocked investors by saying profits had been overstated for years, putting in doubt the survival of a company once ranked as India's fourth-largest software services exporter.

The government quickly stepped in and sacked the board to limit damage to India's once-shining IT sector.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared
People walk in the Wipro campus in Bangalore June 23, 2009. REUTERS/Punit Paranjpe/Files

Wipro Q4 net profit beats estimates, rises 29 percent

Wipro posted a 29 percent rise in its fourth-quarter net profit, beating expectations, helped by increased IT spending by its customers. For the quarter ended March 31, the company said it earned 22.27 billion rupees compared with 17.29 billion rupees a year earlier.  Full Article | Full Coverage 

REUTERS SHOWCASE

Election 2014

Election 2014

India holds biggest day of voting with BJP gaining strength  Read | Full Coverage 

Market Eye

Market Eye

Sensex jumps 351 points, snaps 3-day losing streak  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Deal Talk

Deal Talk

Piramal to buy 20 percent stake in Shriram Capital for $334 million.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage