Tech Mahindra would pay Rs 1,756 crore before the deadline of April 21 for acquiring 31 % stake in Satyam Computer for which it today got the approval from the Company Law Board.
Sources in the company said it would pay the amount before April 21 and it has already arranged most of the funds required. The company has raised Rs 875 crore from the debt market and has Rs 700 crore on its balance sheets. The rest of the amount needed, said sources, would be raised from internal resources.
"We are pleased with the honourable Board’s decision. This takes us one step closer to our objectives. We look forward to complete the next steps of the bid process," Vineet Nayyar, Vice Chairman and CEO of Tech Mahindra said.
The CLB today approved takeover of Satyam Computer Services by Tech Mahindra for deal of Rs 58 a share which the company bid through auction.Satyam which was on the verge of collapse after its former founder B Ramalinga Raju admitted fraud running into several thousands of crores.
Tech Mahindra will also have to deposit the requisite escrow amount for the 20 % open offer in a separate account on or before April 21. The aggregate amount for 51 % stake in Sataym is Rs 2,889 crore. It has to deposit Rs 1,133 crore in escrow account for the open offer.
Meanwhile, citing the CLB order Satyam Computer said Tech Mahindra can appoint four directors on its board after depositing the total funds. The present six directors of the company appointed by the government will continue till further orders, the Satyam statement said.
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The Company Law Board also extended time limit for the Sataym to declare quarterly financial results and file statutory documents up to December 31, 2009.
"Since the company has to restate the accounts for nearly six years after complete audit, which is in progress, I extend the time for filing of returns/documents, which are required to be filed with various statutory authorities...Up to December 31, 2009", CLB chairman S Balasubramanian said in its order in the Satyam case.