New Delhi: The board of Mahindra Satyam on Friday cleared a proposal of Venturebay, a unit of Tech Mahindra, to hike its stake in the company (Mahindra Satyam) through a second round of preferential share allotment to 42.7%.
“Satyam has stabilised. It was a normal board meeting. The main issue was allocation of shares, which is being done,” Kiran Karnik, chairman, board of Satyam, told reporters in Delhi.
Later Mahindra Satyam in a statement said its board of directors has allotted 19.86 crore additional shares to Venturebay, which would take Tech Mahindra’s stake to approximately 43% of the outstanding share capital.
A Tech Mahindra spokesperson said after the preferential allotment Venturebay’s stake in Mahindra Satyam would be 42.7%.
Venturebay has deposited Rs1,152 crore as subscription in the company’s public escrow account.
Venturebay had earlier paid Rs1,756 crore for the 31% stake in Satyam through preferential allotment.
But if all the equity options are exercised and the shares are issued, the stake would be 42.03 of the enhanced share capital, Tech Mahindra said.
Asked if the board discussed the appointment of new statutory auditors for Satyam, Karnik did not comment.
The Company Law Board has already cleared appointment of new auditors. Deloitte is said to be the front runner, but it which not be verified from the company.
Mahindra Satyam had moved the CLB after Venturebay failed to get 20% of Satyam’s shares from the open market as the market price was much higher at Rs73 than the open offer priced at Rs58 a share.
Tech Mahindra had to go for another round of preferential allotment of shares as its open offer to acquire 20% additional stake in Mahindra Satyam did not receive adequate response.