If the board decides to invite bids for 51 per cent, Satyam will have to issue around 697 million shares of Rs 2 each to expand the capital base from the current base of 670 million shares. At the average market price of around Rs 50, the deal would fetch around Rs 3,500 crore.
On the other hand, if the company divests only 26 per cent, it would have to issue only 235 million shares and raise only Rs 1,200 crore, which may not be sufficient, sources said.
Moreover, if Satyam divests 51 per cent, the average share price for the open offer would be lower than if the company divests 26 per cent (because in this case, the shareholder would benefit rather than the company, since the pricing would be more aggressive).
Satyam board member Tarun Das recently revealed that six or seven companies — both Indian and global IT, manufacturing and PE firms — have approached the firm for a complete buyout. To evaluate this, the company’s legal advisors Amarchand Mangaldas have appointed KPMG and Deloitte, who will give their findings in six weeks.
The strategic investors include Larsen and Toubro (which now has a 12 per cent stake in Satyam and has invested around Rs 670 crore in the company so far), Tech Mahindra, Aegis BPO (which is only interested in the BPO business), and the iGate-PE combine. L&T, in fact, has categorically expressed its interest to the government in acquiring management control in Satyam. -->
For those who want to earn money by way of improving self knowledge about stock from the technical & fundamental research........
