The Company Law Board (CLB) on Thursday approved Tech Mahindra's proposed acquisition of a 31 per cent stake in Satyam Computer and asked the buyer to deposit Rs 1,756 crore for the deal by April 21 in a designated account.
The Company Law Board (CLB) on Thursday approved Tech Mahindra's proposed acquisition of a 31 per cent stake in Satyam Computer and asked the buyer to deposit Rs 1,756 crore for the deal by April 21 in a designated account.
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The CLB, in its order, also asked Tech Mahindra to nominate a maximum of four directors on Satyam's board after depositing the required capital towards the stake purchase. It said that Venturbay Consultants Pvt Ltd, a subsidiary controlled by Tech Mahindra, shall deposit Rs 1,756 crore for 31 per cent equity shares in Satyam in the escrow account by April 21, 2009.
CLB Chairman S Balasubramaniam said that on deposit of the amount by Venturbay, the Satyam board will be authorised to issue and allot 30,27,64,327 equity shares of Rs 10 each at a premium of Rs 48 per share to Venturbay.
In the order, the CLB further said that "after allotment of 31 per cent shares on preferential basis and funding the escrow accounts in full in cash towards 20 per cent public offer by Venturbay, it will have the liberty to appoint four nominees as directors on the Board of Satyam."
However, the present six directors of Satyam appointed by the government will continue till further orders.
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