Sebi clears Tech Mahindra's open offer for Satyam

Market regulator Securities and Exchange Board of India (Sebi) has cleared the Rs 1,154-crore open offer for purchase of 20 per cent stake in scam-hit Satyam Computer.

Through Venturebay Consultant, its acquisition vehicle for Satyam Computer purchase, Tech Mahindra had announced an open offer on April 22 for buying additional 20 per cent from the shareholders of the IT firm, which was hit by the country's biggest ever corporate fraud early this year.

The open offer was made in pursuant to Tech Mahindra buying 31 per cent stake in Satyam for Rs 1,756 crore through issue of preferential shares after an auction process conductted by the government-appointed board of crisis-hit company.

Sebi recieved the open offer for its consideration on May 6, and issued its 'observations' on May 27, thus clearing the way for the open offer.

The issuance of Sebi's observations is mandatory for any company to go ahead with the open offer.

The open offer was made by Venturebay Consultants through Kotak Mahindra Capital, its merchant banker for the issue.

Tech Mahindra has made the open offer for purchase of 20 per cent additional equity in Satyam at Rs 58 per share -- the same price at which it bought 31 per cent stake through a preferential issue of equity shares.