14 Feb 2009,ET Bureau
HYDERABAD: Spice group chairman BK Modi said on Friday his company would not ask for any legal immunity to acquire controlling stake in the scam-hit Satyam Computer Services. According to him, the Spice group is willing to take calculated risk by taking over Satyam even before the company’s financials are being restated. It has also appointed Enam Securities as investment banker for the deal.
“We know that it is not possible to get legal immunity as there are many legal suits against Satyam worldwide. Being a global company, we have the wherewithal to fight all these legal battles. However, it will be reflected in the buyout pricing as our legal expenditure may shoot up after the acquisition,” said Modi.
Modi is in Hyderabad for a three-day visit and meeting partners, clients and creditors of Satyam. “This will help us analyse the company’s current status and look at probabilities of its financials. We have lined up over Rs 2,000-crore cash for the buyout,” he said.
Last year, Spice had sold its mobile services business to Idea Cellular for Rs 2,700 crore and this deal accounts for much of its cash pile. He claimed the Satyam board was expected to come up with a transparent auction process to sell the company in a week. “The board has agreed for fresh issuance of equity.
The value of the equity will be decided through the auction process, We also prefer the fresh equity route to acquire Satyam control,” he said.
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