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:

REUTERS EXCLUSIVE

Reuters Showcase

Documents' Leak

Documents' Leak

India widens oil leaks probe to defence ministry  Full Article 

Bharti-China Mobile

Bharti-China Mobile

Bharti Airtel, China Mobile to collaborate on 4G  Full Article 

Food Security

Food Security

India will not cut multi-billion dollar food handout programme - PM  Full Article 

Rich List

Rich List

Bill Gates tops Forbes rich list, Michael Jordan joins.  Full Article 

Tough Task

Tough Task

India needs sustained GDP growth of 9-10 percent - Jaitley.  Full Article 

Budget 2015

Budget 2015

Budget announcements and reactions from the industry  Full Coverage 

New Credit Cards

New Credit Cards

Insight: Costly shift to new credit cards won't fix security issues   Full Article 

Environment Watch

Environment Watch

Deforestation could shift monsoons, leaving India high and dry.  Full Article 

Reuters India Mobile

Reuters India Mobile

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