The three month-old process to find a new owner for Satyam Computer Services culminated on Monday (13th April) as Tech Mahindra won the bid to acquire a majority stake in the scandal-hit company. The government-appointed board started a meeting at 9:00am in Mumbai to unveil the buyer for a 51% stake in the outsourcing company. Tech Mahindra won the bid as it offered Rs 58 per share while its nearest rival engineering firm L&T made an offer of around Rs 49 for each share.

 

Now, Tech Mahindra will buy a 31% stake in Satyam Computers for Rs 1757 crore through a preferential allotment of new shares. Then the company will make a public offer to buy 20% more, as required by Indian law. If the investor unable to acquire a 51% stake after the open offer, it has the option of increasing its stake through a further preferential allotment of shares.

 

The Satyam acquisition will help Tech Mahindra diversify its software services business. After the acquisition it will also compete aggressively with bigger rivals such as TCS, IBM, Infosys and Wipro. Satyam, which serves customers such as GE, GM and Ford will also help Tech Mahindra build a better portfolio of customers.