Tech Mahindra wins bid for Satyam Computers

Tech Mahindra has won the bid to acquire 31% stake in Satyam Computers. Tech Mahindra was the highest bidder with a price tag of Rs. 58 per share  against L&T’s bid at Rs. 49.50 per share. The deal is subject to statutory clearances from Sebi and the Company Law Board (CLB).

L&T already has 12& stake in the company as is currently not interested in divesting its stake.

Tech Mahindra will have to pay Rs 1757 crore (USD 351 million) for 31% at Rs 58 per share, whereas for the total 51% stake the company will have to pay Rs 2,890 crore. The company will make an open offer at Rs 58 per share.

The real Impact of the deal on Tech Mahindra would evolve in the days to come as it aligns the maligned Software firm’s business within its frame of operations and makes sure that clients do not move away from it. The impact of litigation related to Satyam fraud would also be a challenge for the company.

Intense trading activity was witnessed on Satyam Computer counter as the stock zoomed as high as 18% at the time of announcement, just to cool down later. More than 13 Crore shares of Satyam computers were traded. Tech Mahindra stock price also jumped by more than 12% post the announcement.

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