Firm may now subscribe to fresh equity shares of Satyam in 15 days.
Tech Mahindra is expected to subscribe to fresh equity shares of Satyam Computer Services (now Mahindra Satyam) through a preferential issue to increase its stake in the troubled company, as the ongoing open offer has failed to enthuse shareholders to tender their shares at Rs 58, the price quoted under the offer that is closing tomorrow.
As Satyam shares continue the uptrend on bourses and is hovering around Rs 70-80, sources said the open offer has hardly attracted any subscription. "Tech Mahindra will neither extend the open offer date nor revise the open offer price, but will subscribe to fresh equity shares of Satyam as per the clauses of the letter of offer," the sources said.
"The issuance of fresh equity shares by Satyam may begin in the next two to three weeks. The required regulatory approvals are awaited for the issuance," added the source.
Venturbay Consultants, a subsidiary of Tech M, had in April acquired a 31 per cent stake in Satyam for Rs 1,756 crore. Tech M had proposed to buy an additional 199,079,413 shares of a face value of Rs 2 each from public shareholders from June 12 under a Rs 1,154.66 crore open offer for an additional 20 per cent stake.
Since the offer is not fully subscribed, Tech M, as per the agreement, may acquire additional shares through a preferential allotment at Rs 58 a share. The sources said that the open offer hasn’t got Tech M even as extra 1 per cent stake. By regulatory norms, Tech M is required to complete the acquisition of additional shares within 15 calendar days from the date of closure of the open offer. Shares acquired in the preferential allotment would be locked in for a period of three years from the date they’re got.
