Tech Mahindra has emerged the winner of an auction for control of Satyam Computer Services with a bid of $351 million for a 31% stake in the company. Tech Mahindra's total outlay, including an offer to minority shareholders that is capped at 20%, will be around $580 million.
Tech Mahindra will effect the acquisition through a wholly-owned subsidiary Venturbay Consultants. This structure was designed to ensure that the buyer's liability was limited to its equity contribution. Satyam is currently facing litigation from customers and investors, especially in the US, where the financial fallout is unclear. Some analysts have, however, estimated it will be within $200 million.
The bidding process for Satyam was...
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