The Company Law Board (CLB) on Thursday (16th April) approved Tech Mahindra's proposed acquisition of a 31 per cent stake in Satyam Computer. The CLB also asked Tech Mahindra to deposit Rs 1,756 crore for the deal by April 21 in a designated account. In its order, the Board also asked the buyer to nominate a maximum of four directors on Satyam's board after depositing the required capital.

 

The CLB said that Venturbay Consultants Pvt Ltd, a subsidiary controlled by Tech Mahindra, shall deposit Rs 1,756 crore in a designated account. On deposit of the said amount, the Satyam board will be authorized to issue and allot 30,27,64,327 equity shares of Rs 10 each at a premium of Rs 48 per share to Venturbay, Mr S Balasubramaniam, CLB Chairman said.

 

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, CLB said.