LIFE Insurance Corp-oration of India (LIC) will not participate Tech Mahindra’s open offer for Satyam Computer Services. LIC holds a 4.34 per cent stake in the company.
“We will not be participating in the open offer,” a senior LIC official, who did not want to be named, told Financial Chronicle.
However, when contacted, LIC managing director Thomas Matthew said, “There is still enough time for the open offer. We have not decided on it (participation) yet and will take a call later.”
Meanwhile, ICICI Prudential Life, which held 2.87 per cent stake in Satyam Computer Services at the end of December 31, 2008, has sold its entire stake in the company.
“There is no question of participating in the open offer as ICICI Prudential does not have a single share in the IT company (Satyam),” an ICICI Prudential official said on conditions of anonymity.
The private insurer, however, did not respond to email.
Larsen and Toubro and Fidelity Management & Research Company hold 12 per cent each. L&T would not be allowed to participate in the open offer as it was one of the bidders for Satyam Computer, and hence privy to inside information.
A Fidelity spokesperson said the company would not comment on share transactions.
According to Manish Santhalia, fund manager at Motilal Oswal, if these three institutional investors are not going to participate then there are close to 37 crore shares left.
“This will bring the acceptance ratio to 1:2 compared to 1:3 assuming these two institutional investors participate,” he said.
At Rs 58 a share, Tech Mahindra will have to shell out Rs 1,132 crore for the 20 per cent open offer. This is in addition to Rs 1,756 crore it will pay for 31 per cent stake.
Meanwhile, Tech Mahindra deposited Rs 2,900 crore in independent escrow accounts on Saturday, clearing the final hurdle for taking over Satyam’s management control.
“Tech Mahindra has deposited Rs 1,756 crore in an escrow account of HSBC Bank, the balance is deposited in an escrow account for the public offer,” said an investment banker, who has direct knowledge of the transaction.
The Satyam board is meeting in Hyderabad on Monday to approve the formal transfer of ownership to the Mahindra group company.
Mahindra group chairman Anand Mahindra is expected to unveil his vision before the board and senior management on Monday.
The board meeting will see the formal induction of four Tech Mahindra nominees and long discussions on the business plan for Satyam. The board will again meet on Tuesday if critical issues are not thrashed out properly, said a member on Satyam board.
Tech Mahindra is likely to appoint some senior executives, including a chief operating officer, to manage the transition, according to a senior executive close to the Mahindra group.
Tech Mahindra’s vice-chairman and CEO Vineet Nayaar, director Ulhas N Yargop, international operations president CP Gurnani and strategic initiatives president Sanjay Kalra are joining the board.
Source:.mydigitalfc
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1 comment:
Thanks for sharing the details.. It helped to know about the policy.
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