BANGALORE -- The board of Satyam Computer Services Ltd. Wednesday sent Tech Mahindra Ltd.'s proposal to buy a controlling stake in the beleaguered company to the Company Law Board, a person familiar with the development said.
"The proposal has been sent. Satyam expects an approval very soon," the person, who asked not to be named, told Dow Jones Newswires.
Earlier Monday, Satyam named a unit of Tech Mahindra the highest bidder for a controlling stake.
Venturbay Consultants Pvt. Ltd., a special purpose vehicle set up for the stake buy, will pay 17.56 billion ($354.7 million) for 302.76 million Satyam shares, or a 31% stake, at 58 rupees per share, Satyam said.
The deal needs to be approved by the Company Law Board, a semi-judicial authority.
Company Law Board Chairman S. Balasubramanian said Monday the agency will rule on the deal within 24 hours of receiving the recommendation from Satyam's board.
Satyam has been in turmoil since founder B. Ramalinga Raju revealed in January that he had overstated the company's profits over several years and created a fictitious cash balance of more than $1 billion
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