Mahindra’s open offer for Satyam opens June 12

Tech Mahindra's open offer to buy up to 20 per cent of Satyam will open on June 12 and close on July 1.

Tech Mahindra said on Wednesday its open offer to buy up to 20 per cent of fraud-hit Satyam Computer Services will open on June 12 and close on July 1.

Tech Mahindra will offer to buy 199 million shares at 58 rupees each,the outsourcing firm said in a newspaper advertisement. It said the offer included holders of Satyam’s US-listed shares.

Tech Mahindra,31 per cent owned by Britain’s BT Group,was the highest bidder for a controlling stake in Satyam at an auction last week,a deal that will see it step up to the top tier of Indian IT firms.

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Tech Mahindra has paid $351 million for a 31 per cent stake of new equity,and a fully subscribed open offer would take its stake in Satyam to 51 per cent.

If the offer is not fully subscribed,it has the option of a further preferential issue from Satyam to lift its stake.

In early January,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.