Satyam Computer Services Ltd. has received approval from the Securities and Exchange Board of India (SEBI) to facilitate a global competitive bidding process which contemplates the selection of an investor to acquire a 51% interest in the Company.
Acquisition by the selected investor is expected to occur in related steps:
– a subscription by the selected investor of newly issued equity shares representing 31% of the Company’s share capital;
– upon a successful closing of the subscription, in accordance with the applicable Indian law 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.
If upon the closing of the open offer, the investor would have acquired less than 51% of the share capital of the Company through the subscription and the open offer, the investor would have the right to subscribe to additional newly issued equity shares.
In accordance with applicable Indian law, the investor will not be permitted to sell any equity shares acquired for a period of three years from the date of the acquisition, although the investor would be able to subscribe for additional equity shares.
The Company expects to 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 US$150 million.
L.D.