Tech Mahindra deposits money for acquiring Satyam

Venturbay Consultant, the subsidiary of Tech Mahindra has deposited Rs 2,910 crore in the escrow accounts for the acquisition of 51 per cent stake in Satyam.

Tech Mahindra had to pay Rs 1,756 crore ($351 million) for acquiring 31 per cent stake in the company. Tech Mahindra also had to deposit in an escrow account Rs 1,154 crore ($231 million) for an additional 20 per cent stake through an open offer.

The funds for the acquisition was raised through non-convertible debenture, commerical papers as well as borrowings from non banking financial companies. Additionally Tech Mahindra also raised over Rs 700 crore internally. Partial funding has also been done at the special purpose vehicle (SPV) level.

Meanwhile, at the board of Satyam met the Tech Mahindra management and discussed the transition plan for the company. Under the plan, Satyam will continue to operate as a stand-alone unit and its leadership will continue to drive operations.

Once nominees of Tech Mahindra are appointed to the Board upon the closing of the initial allotment of shares to Tech Mahindra, they will focus on appointing a CFO and look at strengthening corporate governance in the company apart from visiting / meeting customers and Satyamites at major locations, worldwide.