20 Apr 2009, , ET Bureau
HYDERABAD: Tech Mahindra Ltd, a mid-sized Indian IT outsourcer, said on Monday it had deposited the funds needed for taking the majority stake in fraud-hit Satyam Computer Services Ltd.
Tech Mahindra was to pay $351 million for a 31 percent preferential allotment of new shares and would then make an open offer for a further 20 percent of the company at a cost of about $231 million.
Funds for the 31 percent stake as well as the open offer have been deposited by Tech Mahindra, Satyam Chairman Kiran Karnik told reporters at the company headquarters in the southern Indian city of Hyderabad.
Tech Mahindra took over Satyam after it bid the highest last week for a controlling stake. The deal will propel Tech Mahindra into the top tier of Indian IT firms and throw a lifeline to the firm at the centre of India's biggest corporate scandal.
Three months ago, Satyam's founder and chairman shocked investors by saying profits had been overstated for years, putting in doubt the survival of a company once ranked as India's fourth-largest software services exporter.
The government quickly stepped in and sacked the board to limit damage to India's once-shining IT sector.
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