Tech Mahindra's offer to buy Satyam shares flops

Bangalore: Tech Mahindra had made an open offer to buy upto 20 percent stake in Satyam Computers. The offer closed on Wednesday but there has been no response from the shareholders. "Tech Mahindra has not received a significant response to its tender offer to purchase 20 percent of Satyam Computer Services from the shareholders," said Sonjoy Anand, Chief Financial Officer, Tech Mahindra. The offer was made at a total investment of up to Rs 1,154 crore for acquiring up to 20 percent stake.

"The final number of shares tendered and accepted (including shares underlying American Depository Shares) will be announced on or about July 8, 2009," said Tech Mahindra in a regulatory filing. Tech Mahindra will subscribe to additional Satyam shares if aggregate number of shares tendered and accepted in the offer is less than the offer size to match the offer.

According to the agreement between Tech Mahindra and Satyam, if Tech Mahindra wants to subscribe more shares then it will be at a rate of Rs 58 per share. Tech Mahindra would like to subscribe to more shares as it will help them raise their stake in the company from the current 31 percent.