14 Mar 2009
HYDERABAD: Taking the process of finding a suitable strategic partner forward, Satyam Computer Services Ltd said on Friday that the process of registration of bidders, which ended on Thursday, has received adequate response from both Indian and international bidders, including private equity firms.
At its meeting on Friday, Satyam's board of directors said that it had taken steps to release the request for proposals (RFPs) in the course of the day to all registered bidders. Further, as announced earlier that it would get a retired justice or chief justice of the Supreme Court to oversee and guide the board throughout the selection process, the release said that the board had requested former Chief Justice of India, S P Bharucha, to oversee the selection process, to which he has agreed.
The board met with Bharucha on March 11, 2009 in Mumbai and discussed the proposed process for the induction of a strategic investor.
Under the procedure finalised by the board, the expression of interest (EOI) from interested bidders along with proof of funds of Rs 1,500 crore ($ 290 million based on exchange rate of Rs 51.635 to $1) is expected to be received by 5 pm Indian Standard Time on Friday, March 20, 2009.
Bidders who have submitted compliant EOIs and executed certain pre-transaction documents, will have access to data and information regarding the Company to enable them to submit technical and financial bids. The release added.
Meanwhile, iGate, an integrated technology and operations company, made a surprising volte face as it announced that it has filed a formal expression of interest in Satyam based on the process specified by the board of Satyam. iGate is now expecting to receive from Satyam Computer Services the latest financial statements, including those for the quarter ended December 2008 and the months of January and February 2009, and updated position on liabilities and potential liabilities of the company. In the event of iGate not receiving this information immediately, it has no option but to withdraw its expression of interest, the company said in a release.
iGate, which first evinced in acquiring parts of Satyam in January, backed off later saying that the scam-hit company has lost its value with customers moving out of the company. "The process has taken time, customers have moved out and Satyam has lost its value. We have lost interest in buying the company," Phaneesh Murthy CEO told TOI a few weeks ago. "Until the new board releases new account, nobody is going to move. That is the first picture," he added.
"We continue to be concerned about the probability of significant value erosion at Satyam. However, our interest to pursue this transaction is subject to the evaluation of the financial position of Satyam and the extent of its possible value erosion. Since the board of Satyam had put a deadline, we filed our expression of interest. We still believe that it is a long shot for us to consummate this transaction in its current form," said Murthy.
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