Tech Mahindra bags Satyam

The telecom outsourcing company of the Mahindra group will pay around $580 million to acquire 51% of Satyam Computer, ending the saga of India's biggest corporate fraud.

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...

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