PTI
Hyderabad, Mar 6: Satyam Computer Services on Friday received approval from market regulator SEBI to facilitate a global competitive bidding process enabling it to sell 51% stake in the company to a strategic investor.
The selected investor will be issued fresh equity of 31% and upon a successful closing of the subscription, the investor will be required to make a mandatory minimum public open offer to purchase a minimum of 20% of the company's share capital.
The open offer will be made at the same share price as the price paid by the investor for the subscription, the company said.
But if after the open offer, the investor fails to acquire 51% stake in the company, then it would be issued additional fresh equity that will result in the investor acquiring 51% of the share capital of the company.
There is a lock-in period of three years on the investor as per which the investor will not be permitted to sell any equity shares acquired from the date of the acquisition, although the investor would be able to subscribe for additional equity shares.
Shares of the company had closed at Rs 35.10, down 7.51% on the BSE on Thursday.
Keeping the networth of the interested companies at 150 million dollars, Satyam will invite expressions of interest from qualified investors shortly in a global competitive bidding process.
"Qualified investors are expected to have total net assets in excess of USD 150 million," it said.
The company will issue details of the competitive bidding process.
"In response to the company's application to SEBI, SEBI granted approval for exemptions from certain requirements of the Indian takeover regulations to facilitate the global competitive bidding process which subject to receipt of all approvals, contemplates the selection of an investor to acquire a 51%interest in the company," Satyam said.
The Company Law Board had earlier authorised the government-inducted company's Board of Directors to select an investor, subject to certain conditions. SEBI's approval is not an assurance that any qualified investor will bid to acquire any interest in the company at an appropriate price or at all.