The Satyam board has selected Venturbay Consultants, a subsidiary of Tech Mahindra as the highest bidder to acquire a controlling stake in the company, subject to the approval of the Company Law Board.
Tech Mahindra has to make an open offer within four days of CLB nod.
Tech Mahindra, however, will run Satyam as an independent company with separate liabilities.
Tech Mahindra would pay Rs 1,900 cr within the next four days for the 31 per cent stake in Satyam and Satyam would operate as a special purpose vehicle until Tech Mahindra raises its stake to 51%.
Tech Mahindra would infuse Rs 1756 cr ($351 mn) based on the exchange rate of 50/$.
No other bid was within at least 90 per cent of Tech Mahindra’s bid. While L&T’s bid was at Rs 46/share, WL Ross’ bid for Satyam stood at Rs 20/share.
Earlier, all three bidders had qualified L&T, Tech Mahindra and Cognizant had qualified for the financial bidding stage after the technical bids were evaluated.
Spice Corp, IBM and iGate were among those confirmed names that dropped out of the race after showing an interest in the company. iGate decided to drop out of the race for Satyam after concerns on falling revenues and not enough clarity on customers and margins. Spice Corp claimed that the bidding process lacked transparency and pulled out of the race.