Scam-scarred Satyam Computer Services formally kicked off its hunt for a controlling partner on Monday after its government appointed board on Monday asked suitors to register for bids by March 12.
The deadline for the financial bid has been set for March 20. The bidders must offer a detailed proposal and also provide proof on the availability of funds of at least Rs 1500 crore ($290 million).
The Board will not stipulate a minimum floor price as the capital market regulator SEBI has waived the requirement. The short-listed eligible bidders will be given access to certain business, financial and legal diligence material relating to the company.
A former Chief Justice of India or a former Supreme Court judge appointed by the Board would oversee the process.
The winner will get 31 per cent in new shares and then take 20 per cent through a mandatory open offer to get a further 20 per cent.
US giant IBM, Indian engineering firm Larsen & Toubro and the BK Modi promoted Spice Group are among those believed to be interested in acquiring controlling stake in Satyam.
“So far it is okay and we will go ahead with the bidding process,” Modi told Hindustan Times, adding that several bidders may come into the picture as there was no floor price.