Satyam Starts Dilution Talks
Information Technology major Satyam Computers Ltd has initiated discussions with Janus Equity Fund, one of the largest global equity investors, for a possible dilution of stake.
The company recently made a detailed presentation to a team of Janus Fund at its headquarters in the US on Wednesday, sources said. The Satyam team was led by its managing director Rama Raju and executive director Srini Raju.
However, a Satyam Computers spokesperson declined to comment on the presentation made by the company.
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Janus Fund had made its big-bang debut in India by picking up a 5.66 per cent equity in the country's largest private sector petrochemicals company, Reliance Industries, last month.
The shares were picked up from the secondary market in a single transaction.
Satyam Computers announced on Wednesday its intention to dilute five per cent stake in the company to strategic partners, including international equity investors and customers.
Satyam Computer has already entered into an agreement with the Government of Singapore Investment Corporation to dispose of close to two per cent equity in its Nasdaq-listed subsidiary, Satyam Infoway, for around $50 million at $36 per share.
The company is awaiting the Foreign Investment Promotion Board's approval.
Satyam Computers holds around 56 per cent stake in Satyam Infoway. The Singapore body had picked up the stake at a 12.5 per cent discount to the company's Nasdaq price at $32 on Tuesday. Investment banker Salomon Smith and Barney was the advisor to the deal.
The divestment of equity in Satyam Infoway is part of the company's corporate plan to turn it into a debt-free one. The company has around Rs 330 crore debt on its books, a company official said.
Satyam Computers earlier decided to defer the divestment of three per cent equity in Infoway due to a crash in Nasdaq prices