Satyam Computer Services Ltd has received approval from the Securities and Exchange Board of India (Sebi) to facilitate a global competitive bidding process for selling 51 per cent equity stake in the company. The process,cleared by the Sebi,is expected to include subscription by the selected investor of newly issued equity shares representing 31 per cent of the companys share capital. Thereafter,the investor will be required to make a mandatory minimum public open offer to purchase a minimum of 20 per cent of the companys capital. The open offer will be made at the same share price paid by the investor for the subscription, it said in a statement. Satyam shares zoomed on the stock exchange following the Sebi clearance for the stake sale and closed 19.94 per cent higher at Rs 42.10. It said the investor would not be permitted to sell any equity shares acquired for a period of three years from the date of the acquisition,although the investor would be able to subscribe for additional equity shares. The company expects to invite expressions of interest from qualified investors shortly in a global competitive bidding process. Qualified investors are expected to have total net assets in excess of $ 150 million (around Rs 750 crore). If the investor acquires less than 51per cent of the stake through the subscription and the open offer,the investor would have the right to subscribe to additional newly issued equity shares so that the shares acquired by the investor through the three related steps (the initial subscription,open offer and the subsequent subscription,if any) will result in the investor acquiring 51 per cent of the stake. The subsequent subscription,if any,will not result in requiring a further open offer. The bidding process will begin shortly, Satyam board member Deepak Parekh told reporters here after meeting corporate affairs minister P C Gupta in New Delhi. Parekh,along with Satyam Chairman Kiran Karnik and board member Tarun Das,met corporate affairs minister P C Gupta. Larsen & Toubro,Tech Mahindra,Spice group,the Hindujas and some private equity firms had earlier evinced interest in acquiring the company. Gupta said a retired Supreme Court judge would be overseeing the whole process,which would ensure that it is done in a transparent manner. Sebi has already granted approval for exemptions from certain requirements of the Indian takeover regulations to facilitate the global competitive bidding process. The Company Law Boards Principal Bench in New Delhi has authorized the companys board of directors to select an investor,subject to certain conditions.
