Satyam to issue fresh shares to Tech Mahindra
07 Jul 2009
The Company Law Board on Tuesday said it has asked the board of Satyam Computer Services Ltd to allot fresh shares on a preferential basis to the company's new owners, Tech Mahindra Ltd.
The development comes after Satyam shareholders rebuffed the open offer made by Tech Mahindra, as only a 0.1 per cent stake in the company was put on offer.
"They (Tech Mahindra) were supposed to buy shares (via an open offer). They failed. I have asked Satyam to issue fresh shares," S Balasubramanian, chairman of the CLB, confirmed.
"The company (Mahindra Satyam) is authorised to issue and allot 19,86,58,498 equity shares of Rs2 each at the premium of Rs2.50 to Venturebay," said Balasubramanian, allowing Mahindra Satyam's application.
Mahindra Satyam, the Tech Mahindra-controlled avatar of the scam-hit Satyam Computer, had moved the CLB after Venturebay failed to subscribe to 20 per cent of Satyam's shares from the open market.
The CLB also authorised Mahindra Satyam to appoint auditors to conduct audit of the company. "The board of the company is authorised to appoint statutory auditors to conduct and carry out audit of the company of the year 2009-2010 subject to notification by the general body as when the AGM is held," said the CLB in its order.
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