Notorious Indian IT crook Satyam Computer Services’ new board has picked Tech Mahindra as the highest bidder to acquire a controlling stake in Satyam.
Tech Mahindra bid Rs 58 per share and will pay $351 million (Rs 1,756 crore) for an initial 31% stake in the company.
Tech Mahindra must also make a cash offer to acquire an additional minimum of 20% at a minimum price of Rs 58 per share.
Part of the Mahindra & Mahindra industrial house, Tech Mahindra (23,000 employees) has been focused on the communications sector. The company claims to be India’s sixth largest software exporter.
Although Satyam has lost some customers lately, the company still has a rich roster of contracts and employees, which seem to be the principal reasons for Tech Mahindra’s interest in the company.
L&T and Cognizant were also reported to have bid for Satyam.
Satyam has been reeling after its former CEO B.Ramalinga Raju acknowledged years of manipulating the company’s accounts to show higher revenues and profits.
Raju is cooling his heels in an Indian jail now.
Satyam was until a few months ago hailed as Indiaâ€™s fourth largest software exporter with marquee clients like GE, Microsoft, Nestle and Quantas.
But today the Satyam brand is in tatters and the name synonymous with crook.