Shares of Satyam surged nearly 14 per cent after the company received approval from SEBI for a bidding process to sell 51 per cent stake.
NYSE-listed Satyam Computer Services, currently under probe for one of the biggest corporate frauds in the country, today received SEBI nod to sell 51 per cent stake in the company through a strategic partner and will initiate bidding process shortly.
SEBI has approved an international bidding process that would allow a strategic investor to acquire up to 51 per cent stake in the company. Expression of Interest from investors would be invited shortly, said a company statement on Friday.
Satyam shares surged 18 per cent to Rs 42.10 on SEBI nod.
"The bidding process will begin shortly," Satyam's government-appointed director Deepak Parekh said here.
The SEBI nod propped up the company's shares but possible suitors want more information to take a call, with Tech Mahindra, Hinduja and L&T seeking more details on the process and valuation prior to making a move on bidding.
Spice group said it is ready to bid but wants 51 per cent stake and immediate management control.
The strategic sale would involve two processes - first, the selected investor would be issued fresh equity of 31 per cent stake, and then a mandatory open offer of 20 per cent of the company's share capital would have to be made, which would be made at the same share price as the price paid by the investor for the subscription.
Hinduja group CFO Prabal Banerjee said the company can take a decision on bidding only after getting some more information.
However, AV Birla group chief Kumaramangalam Birla, who met corporate affairs minister Prem Chand Gupta on Friday, said his company is not interested in bidding for Satyam.
Among other norms for bidding include that qualified investors should have net assets in excess of USD 150 million, and that the investor will not be allowed to sell any equity share acquired for a period of three years from the date of acquisition.
The Government-inducted board of Satyam is pushing for the sale of the company, as it faces potential client loss. On January 7, its former chairman B Ramalinga Raju confessed to have inflated accounts of the company for over seven years, leading to a fraud of Rs 7,800 crore. This landed the company into disgrace and uncertainty.
If post closing of the open offer, the investor fails to acquire 51 per cent through subscription and open offer, the investor would have the right to subscribe to additional fresh equity shares, enabling the investor to acquire 51 per cent stake in the company.
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