Satyam Computer Services Ltd has allotted 30,27,64,327 shares of the company (initial shares), comprising 31 per cent of the enhanced share capital of the company, to Venturbay Consultants Private Limited, a subsidiary controlled by Tech Mahindra Limited.
As stated in the press release dated 20 April 2009, Venturbay had deposited into escrow Rs17,56,03,30,966 ($351 million) as the subscription amount for the initial shares.
''Since the conditions precedent to the allotment of the initial shares have now been satisfied by the parties, the funds have been released from the escrow account to the company's account,'' a Satyam release said.
The company said it expects to use the funds for general corporate purposes, including repayment of certain existing loans.
Venturbay will have to make a mandatory cash tender offer to acquire an additional minimum of 20 per cent of the enhanced share capital and convertible instruments of Satyam at a minimum price of Rs58 per share, under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.
If, upon closing of the public offer, Venturbay will have acquired less than 51 per cent of the enhanced share capital pursuant to the preferential allotment and the public offer, Venturbay will have the option to subscribe to additional newly issued shares of the company, such that the shares acquired through the preferential allotment, the public offer and the subsequent preferential allotment, if any, will be not more than 51 per cent of the enhanced share capital, the Stayam release said.
The initial shares and the shares acquired by Venturbay in the public offer and the additional shares, if any, will be locked-in for a period of three years from the date of allotment or acquisition, as the case may be.
In connection with the contemplated public offer, the company has asked its investors, shareholders and holders of the American depository shares to follow documents filed with the SEC and freely available on the SEC's website.