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:
  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Canonisation

Canonisation

Pope declares sainthood of two Indians, four Italians.  Full Article 

Stake Sale Strike

Stake Sale Strike

Coal India trade unions call off strike in victory for Modi.  Full Article 

Markets Weekahead

Markets Weekahead

Ride the bull with a finger on the ejector button.  Full Article 

Arms Purchase

Arms Purchase

India approves $2.6 bln mounted gun purchase - official.  Full Article 

Interview with Bulgari CEO

Interview: Bulgari CEO

Bulgari CEO: we shouldn’t have left India so we’re back  Full Article 

Formula One

Formula One

Hamilton takes second F1 title in style.  Full Article 

Available For Remake

Available For Remake

Bollywood finally wants to pay the price for remakes  Full Article 

Davis Cup

Davis Cup

Vintage Federer seals first Davis Cup for Switzerland.  Full Article 

Movie Review

Movie Review

"Happy Ending" is old wine in an older bottle  Full Article 

Reuters India Mobile

Reuters India Mobile

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