Satyam kick-starts bidding process for 51 per cent equity sale

Satyam Computer Services Ltd today announced the commencement of a competitive bidding process for selection of an investor to acquire 51 per cent equity interest in the company.

Interested bidders will have to submit a detailed expression of interest (EOI) together with the Kiran Karnikproof of financial strength of at least Rs1,500 crore (about $290 million) by 5:00 pm on 20 March 2009. 

Those bidders, who have validly registered their interest in participating in the bid process, will be sent a request for participation (RFP) shortly thereafter, the company said in a release.

Based on the revised takeover regulations as amended by the Securities and Exchange Board of India (SEBI) and subject to receipt of all approvals, the board of Saytam Computer Services has proposed an initial subscription of 31 per cent of the company's newly-issued share capital by the selected investor.

Upon deposit of the entire subscription amount, the selected investor should also ensure requisite funds necessary for the public offer in the escrow account as required under the SEBI takeover regulations.

The investor will be required to make a mandatory public offer to purchase a minimum of 20 per cent of the company's enhanced share capital. The public offer will be made at the same share price as the price paid by the investor for the initial subscription; and