Tech Mahindra wins bid for the scam-rotten Satyam Computer Services. The 4th largest Software firm in India nosedived after its former Chairman Ramalinga Raju revealed about his decade long fraud of about Rs.7000 crore. Tech Mahindra will pay Rs.1757 crore for 31% stake in Satyam. Satyam will now have a market cap of Rs.5800 crores with its expanded equity. There is a likely acceptance ratio of 34% in Satyam open offer. The price quoted by Tech Mahindra Rs.58/share. A total of Rs.2889 crore will be paid for the whole 51% share in Satyam.
Industry sources say there is a lot of synergies between Tech Mahindra and Satyam. The clients of Satyam can also be relieved that the take over process has come to a happy ending. The Company Law Board has said that Satyam will file an affidavit quoting the winning bidder.
L&T has a 12% stake and Fidelity has some 4 crore shares in Satyam. Its likely that Tech Mahindra might buyout those shares too.
