Satyam Computer Services Ltd will delist its American Depository Shares (ADS) from NYSE Euronext, while it will continue to remain listed on the Indian stock exchanges and the New York Stock Exchange.
Satyam Computer said its exit from NYSE Euronext in Amsterdam is due to financial and legal pressures and will remain listed on BSE and NSE in India and on NYSE through its ADS.
The application for delisting is subject to the approval of Euronext Amsterdam, the company added. The holders of Satyam's ADS would be able to participate in the 20-per cent public offer.
Satyam announced the decision to delist from Euronext Amsterdam after Tech Mahindra, the IT arm of automobile major Mahindra and Mahindra, bid over Rs1700 crore ($351 million) to buy a 31-per cent stake in the fraud-hit firm.
Satyam, the fourth-largest outsourcing firm in India, got listed on Euronext Amsterdam, last year, under NYSE Euronext's new "fast path" process for cross-listings in New York and Europe.
Before Satyam founder-chairman disclosed the fraud at his company in January, Satyam was ranked India's fourth-largest outsourcing firm and Tech Mahindra was sixth-largest.
Combining the fourth-largest and the sixth-largest IT firms should create a top-tier information technology outfit, which is on par in size with IT majors like Tata Consultancy Services, Infosys and Wipro.
The acquisition of Satyam will help Tech Mahindra, in which Britain's BT Group holds about 31 per cent, diversify its services by reducing its reliance on the telecom industry.
BT is also a major customer of Tech Mahindra, which provides software services.
Tech Mahindra gets more than half its revenue from Europe, and the Satyam purchase would help it significantly expand its presence in the United States.
Meanwhile, the sale of fraud-hit Styam has come as a welcome relief to the ruling UPA government at the centre and the Congress government in Andhra Pradesh, the base of the fraud-hit Satyam Computer Services.
Tech Mahindra, which will eventually own 51 per cent in Satyam Computer Services, plans to fund about three fourths of Rs2,890 crore through debt.
''The cash available through internal generation for Tech Mahindra is around Rs700 crore. The rest will be raised through debt by Tech Mahindra and the special purpose vehicle (SPV), a 100-per cent subsidiary. The debt will be raised through hard underwriting from Kotak Mahindra Bank,'' Mahindra & Mahindra Group CFO Bharat Doshi had said on Monday.