 Satyam board gives nod to select strategic investorPublished on Sun, Feb 22, 2009 at 10:41 | Source : CNBC-TV18 Updated at Mon, Feb 23, 2009 at 10:11 100654 Investors following Mahindra Satyam. Share this News with them.
A strategic investor can now have management control in the beleaguered firm Satyam Computer Services as the company's board has opened up the option of investor acquiring a 51% stake in the software firm. Satyam board has decided to allow strategic investor to buy up to 31% equity through a preferential allotment and an additional 20% through a mandatory open offer as the Company Law Board (CLB) permitted the company to raise its authorised capital to Rs 280 crore from Rs 160 crore, and allowed it to induct a strategic investor through a competitive auction process. This clearly shows that the government-appointed board at Satyam Computer Services has firmed up a 'process' to select a strategic investor. Also Read: Satyam sale process to complete before elections: PC Gupta Satyam board meeting announcements In the board meeting, Satyam spokesperson informed that the PW Bangalore resigned Satyam auditorship on February 12. Board has also recommended removal of Price Waterhouse as auditors to MCA. Board has accepted CEO's plans to retain client and is in talks with Boston Consulting, Advisors on client retention. The board further stated that bank funds are used in a controlled, phased manner and are used to meet immediate, near-term operational needs. According to board member TN Manoharan, the company is receiving unsolicited offers from banks regarding funding. AS Murty, the new chief executive officer at Satyam informed that Satyam has won purchase order and work extension of over USD 250 million since January 7.
Murty also said that PW has tendered termination notice as statutory auditor of Satyam and the company will appoint a new statutory auditor.
C Achutan, another Satyam board member said that board has authorised CEO as Murty to finalise, implement retention plan. He further added that the board has okayed finetuning expenditure and profit optimization plan. The board has also approved the process for inviting strategic investor. "We have decided to seek regulatory approvals early next week. Upon receiving these clearances, the board would announce the process to be observed," Deepak Parekh, board member of Satyam and Chairman of HDFC, said after the board meeting. Engineering group Larsen & Toubro , Mahindra and Mahindra Group firm Tech Mahindra and B K Modi-owned Spice Group are among the suitors who have declared their interest in Satyam, once ranked the fourth largest software exporter. Page 2: Clean slate of Satyam's Board meeting announcements
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