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INDIA BUSINESS WORLD - 1st May To 15th May - 2009
TECH MAHINDRA ACQUIRES 31% IN SATYAM COMPUTER SERVICES
TECH Mahindra has acquired a 31% stake in Satyam Computer Services, nearly three weeks after it was named the new owner of the belagured IT firm.
The Pune-based company, which is the IT arm of Mahindra & Mahindra, has been allotted 30.27 crore shares of Satyam in a preferential allotment for Rs 1,756 crore.
The share allotment was approved by the government-nominated Satyam board through a circular resolution.
The funds have been released from the escrow account to the company's account. And Satyam expects to use the money for general corporate purposes, including repayment of certain existing loans, said a company statement.
The preferential allotment of shares will be followed by a mandatory open offer to acquire an additional 20% stake for Tech Mahindra to get a majority control of Satyam. Priced at Rs 58 per share, the two transactions will cost Rs 2,889 crore.
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