Satyam gets SEBI nod to sell 51 per cent stake via global bidding

Satyam Computer Services Ltd has received approval from the Securities and Exchange Board of India (SEBI) to sell 51 per cent of its stake through a global competitive bidding.

Satyam, which has been mired in country's biggest corporate scandal, said it will sell 51 per cent stake in the company in a two-phased global bidding process, subject to receipt of all approvals.

A selected investor will acquire newly issued equity shares representing 31 per cent of Satyam's share capital and then make a mandatory minimum public offer to buy a further 20 per cent stake, the company said in a statement.

Under the two-phased sale process, the selected investor will subscribe to 31 per cent of Satyam Computer's newly issued equity shares. Upon successful closing of the subscription, in accordance with SEBI takeover (now amended) regulations, the investor will make an open offer to purchase a minimum 20 per cent 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 per cent 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, such that the shares acquired by the investor through the three related steps, the initial subscription, open offer and the subsequent subscription (if any) will result in the investor acquiring 51 per cent of the share capital of the company.