Investment bankers recommend 51 pc stake sale in Satyam
Goldman Sachs and Avendus, investment bankers to Satyam Computer, are learnt to have proposed majority stake stake sale in the IT company to a strategic investor.business Updated: Feb 26, 2009 23:13 IST
Goldman Sachs and Avendus, investment bankers to Satyam Computer, are learnt to have proposed majority stake stake sale in the IT company to a strategic investor.
According to a source associated with the process, the Satyam board which met on Thursday in Hyderabad, is understood to have discussed the proposal and would approach market regulator SEBI on Monday on the pricing issue. After getting the green signal from SEBI, it would invite EoI from bidders.
According to the source, the investment bankers in their presentation said it would be better to dilute 51 per cent equity, which should include 31 per cent preferential route 20 per cent via open offer, to a strategic investor.
Suitors Hinduja Group and B K Modi-promoted Spice Group had said they would prefer taking 51 per cent in Satyam.
Earlier, the CLB had allowed the board to induct a strategic investor in a transparent manner. Following this, the board in its last meeting on Saturday had decided to invite bids from strategic investors to steer the company out of financial quagmire.
Satyam plunged into a crisis after its founder Ramalinga Raju admitted to Rs 7,800 crore accounting fraud. Following Raju’s confession, the government has superceded the Satyam board.