TechM may raise open offer price

25 Apr 2009, ET Bureau

NEW DELHI: Hinting at a possible increase in its open offer price for Satyam, the new owner Tech Mahindra has advised shareholders of crisis-hit IT firm to wait till June 22 for the final price before tendering their shares. The open offer for acquiring 20% equity in Satyam at Rs 58 a share is set to commence on June 12 and close on July 1.

While market regulator SEBI has ruled that the open offer price cannot go below Rs 58 per share, the acquirer, in its public announcement, has said that it can raise the offer price by June 22. “As the offer price cannot be revised during seven working days prior to the closure of the offer, it would, therefore, be in the interest of shareholders to wait until the commencement of that period to know the final offer price,” Tech M said.

Tech Mahindra, which won the bid to acquire Satyam Computer Services, has made a public announcement to acquire 20% of the it company through its wholly-owned subsidiary Venturbay Consultants, a move that is aimed at increasing the new owner’s stake to 51%.
However, the offer price need not be necessarily hiked as Tech Mahindra can raise its stake to 51% at the same price of Rs 58 through a second preferential allotment if it fails to garner 20% equity through the open offer.