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How Tech Mahindra won the Satyam bid

April 13, 2009

Board members Deepak Parekh and S B Mainak abstained from discussion regarding the selection of the highest bidder.

This was due to possible conflicts of interests since Deepak Parekh sits on the board of directors of the controlling shareholder of one of the bidders, while S B Mainak is the executive director of a significant shareholder of another bidder.

Under the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (the "Takeover Regulations"), Tech Mahindra will be required to make a mandatory cash tender offer to acquire an additional minimum of 20% of the enhanced share capital and convertible instruments (the 'public offer') at a minimum price of Rs 58 per share (or approximately $1.16 per share based on the exchange rate of Rs 50 to the dollar).

Image: L&T Infotech centre. | Photograph, courtesy: L&T Website