New Delhi: Tech Mahindra, the IT arm of auto major Mahindra and Mahindra, Monday won the bid for India's fourth largest software exporter Satyam Computer.
Satyam's new board of directors, which met to select the highest bidder, chose Tech Mahindra following its bid of Rs 1,757 crore for 31 per cent stake in the scam-tainted IT giant.
Tech Mahindra offered Rs 58 for each Satyam share.
The board will now have to inform the Company Law Board (CLB) of its selection. The CLB will will announce its approval, within a week. The new owner will take over the management only after CLB's nod.
Engineering major Larsen and Toubro (L&T) and private-equity firm WL Ross were among the other major contenders for the Hyderabad-headquartered Satyam.
L&T already holds 12.04 per cent stake in Satyam.
The six-member Satyam board is headed by Kiran Karnik, former president of the National Association of Software and Services Companies (NASSCOM) that represents the software industry.
Besides Karnik, the board comprises HDFC chairman Deepak Parekh, former Securities and Exchange Board of India (SEBI) member C Achuthan and Confederation of Indian Industry (CII) mentor Tarun Das.
Karnik said, "This is the culmination of what we have been through. The final steps are now just about to be taken and I have very happy that at this stage Satyam is with a new investor. It has been a great company which was driven off-course. We as a board tried to put the fire and get it on course and I am please to say it has got it there now. There is new captain on board and he can take it forward as it deserves to be taken forward."
Welcoming the sale of 51 per cent stake in Satyam to Tech Mahindra, Director General CII, Chandrajit Banerjee said, “Tech Mahindra, a Rs 3,800 crores company is a competent IT services provider. This would help Satyam come back to its zenith. The takeover by Tech Mahindra would also immensely help Satyam regain its shareholder value and would also benefit its employees and customers.”
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