Satyam moves CLB for Tech Mahindra sale

The IT company moved the Company Law Board to seek approval of its sale to Tech Mahindra.

Crisis-ridden Satyam Computer Services on Wednesday moved the Company Law Board (CLB) to seek approval of its proposal to sell the IT company to Tech Mahindra.

The approval of the CLB is necessary for the new management to come in and take control of Satyam,which is currently being managed the government-appointed board members.

Tech Mahindra,a company promoted by the industrial house Mahindras,won the bid to acquire 31 per cent fresh equity in Satyam on Monday.

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Tech Mahindra outbid the engineering giant L&T with an offer of Rs 58 a share entailing up to Rs 2,900 crore for a majority stake in Satyam.

Having won the bid,Tech Mahindra would have to make an open offer for an additional 20 per cent stake within a week of getting clearances from Company Law Board,which had in January allowed the government to appoint a board to run the company thrown into crisis after its founder Ramalinga Raju disclosed a Rs 7,800-crore accounting fraud.

The winning bidder,Satyam Chairman Kiran Karnik had said,would have to bring in Rs 1,756 crore for 31 per cent,in addition to making an open offer for 20 per cent at the bid price of Rs 58 a share entailing a total of about Rs 2,889 crore.

Apart from Tech Mahindra and L&T,American billionaire investor Wilbur Ross made the third highest offer.

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Earlier,talking to reporters,Corporate Affairs Minister Prem Chand Gupta said,”Right now,they (Satyam) have to move honourable CLB. Unless,they take a view,I can’t say anything and it would not be fair on my part…”

The minister,however,exuded confidence that there would not be any delay in the constitution of the new board of Satyam and the incoming management would retain the existing staff.