New Delhi: The board of Satyam is likely to announce the details of the process of inviting strategic partners into the company by the end of this week, the chairman of the board, Kiran Karnik, said on Sunday.
“As per the CLB order we will approach SEBI and by the end of this week we expect to make the process public and after that we will invite proposals from the interested parties,” Karnik said.
While the board did not announce the process at Saturday’s meeting, leading to possible suitors seeking details on this, Karnik said the process that “we have devised is first to get approval from the regulatory authority as per the direction of the CLB. We expect to get approval this week and make it public at the same time”.
Karnik did not divulge whether the board has decided in favour of inducting a strategic minority partner or selling 51% of the company’s equity.
However, sources said the board has not favoured a 51% stake sale of the company. “Whether it is minority or majority sale the company needs strong management and a strong buyer who can bring in leadership and funds,” a source said.
The CLB order last week quoted the Satyam counsel making a case for a minimum stake sale of 26%.
Yesterday Spice Corp chief B K Modi said that “there is no mention of the process that the board approved. Unless we know the details of the process, how can we (talk) on our next move?”
Larsen and Toubro (L&T) officials said they are not aware of the outcome of the board meeting.
“I am not aware of the outcome of the board meeting,” Y M Deostahlee, CFO of L&T, said. When told about the board’s approval of the process, he said, “We need to know the process before making any comment.”
Tech Mahindra vice-chairman & CEO Vineet Nayyar said unless he sees the process of inducting a partner in detail, he cannot comment on the next step.
Hinduja Group India chairman Ashok Hinduja said it all depends on the process and the assets and liabilities of the company and “we would like to see the correct balance sheet of the company. We will not be interested in a minority stake as we would not like to go as an investor”.
“We would like to get management control and even if we do not get the majority stake in initial stages, we should know the process (so) that in the final stage we (can) get the majority,” he said.