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We put our best foot forward: Mahindra on Satyam

Apr 13, 2009 11:09 PM IST Business Business

Mumbai: Scam-hit Satyam now belongs to Venturbay Consultants, a subsidiary of Tech Mahindra. It outbid L&T's offer of Rs 49.50 a share to take a 31 per cent stake in the company for Rs 1,756 crore.

The Government-appointed board, after months of handholding, is today satisfied with the deal.

“I am very happy that now Satyam is with a new investor. It has been a great company which was driven off course. We as a board tried to put out the fire and get it on course and I am pleased to say that the company has a new captain onboard. The company will now move forward as it deserves,” Chairman of the Satyam board Kiran Karnik said.

However, the Company Law Board has to give its seal of approval to the deal. But that is likely to be just a formality.

Tech Mahindra will have to make an open offer for an additional 20 per cent stake to get management control.

“We put our best foot forward. We had a bid which we thought was reasonable for us,” Managing Director Anand Mahindra said.

The current board is working out a transition plan. Restatement of Satyam's accounts will take another four-five months. But the sale brings to an end a difficult three months at Satyam, raising questions which it took a Prime Minister to answer.

“In India when a fraud took place it was confined only to one industry. I am confident that our regulatory system has resilience and the strength to ensure that no other Satyam will ever take place,” PM Manmohan Singh said.