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The government has further reduced its role in Satyam Computer Services (rebranded as Mahindra Satyam), after Tech Mahindra completed the open offer process and then followed up by hiking its stake through a preferential allotment. That completes a major part of its task ensuring that Satyam stays afloat.
HCL Axon, a software company implementing SAP and a subsidiary of HCL Technologies, has acquired the enterprise solutions SAP practice from UCS Solutions, part of the South African UCS Group. The acquired division does SAP implementation for retail and wholesale companies. The consideration is $7.7mn plus an additional payment depending on the growth achieved over two years.
The open offer by Daiichi Sankyo to Zenotech Laboratories’ shareholders will not open today, as scheduled. The Chennai High Court (Madurai Bench) has granted an interim injunction in connect with the offer, said ICICI Securities, the manager to the offer, in a filing to the Bombay Stock Exchange.
Gitanjali Gems, a jewellery maker, has acquired a stake in a group company Diamlink Inc. It announced to the Bombay Stock Exchange (BSE) that Gitanjali USA Inc, a wholly owned subsidiary, has acquired a 51% stake in New York-based Diamlink. The company has not shared details about the subsidiary’s turnover or the consideration paid.
At first, it might seem that Tech Mahindra’s plans did not work out, as its open offer failed, leaving it with a 43% stake instead of a 51%. This setback hardly matters, however, if the two companies merge. A merger could mean that the group could repay the entire debt taken for the acquisition, using Satyam’s shares held by Tech Mahindra, if it so wishes.
When Wockhardt decided to sell its animal health business, it expected to get about Rs 150 crore for it. When the business was actually sold, to a French company Vetoquinol, the consideration remained undisclosed. So, if it met its target or fell short of it since exceeding it seems unlikely. The pharmaceutical company is selling non-core businesses in a bid to raise cash and lower its bloated debt.
Vetoquinol and what it gets
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Satyam Computer Services has shared the disclosures it made earlier to bidders with its public shareholders. Tech Mahindra had then emerged as the successful bidder and subsequently made an open offer to Satyam’s shareholders.
Satyam Computer Services has announced that Tech Mahindra has deposited $351mn in an escrow to fund the preferential allotment for a 31% stake. It has also deposited $231mn required for the 20% open offer. That completes the funding requirements for the Satyam acquisition. Tech Mahindra can now appoint four of its nominees on the Satyam board who will join the six government appointed nominees. Satyam will allot to Tech Mahindra the shares required for the 31% stake, after getting Sebi approval and fulfilment of other conditions.
Tech Mahindra’s acquisition of Satyam Computer Services is likely to proceed smoothly, as it is a government nominated board at the helm of affairs. That was evident in the speed with which the Company Law Board approved the preferential allotment to Tech Mahindra, to give it a 31% stake in Satyam.
Tech Mahindra can appoint four nominees on Satyam’s board while the existing six government nominees will continue to hold their positions. The new directors will get the same immunity that the existing directors have from any litigation in the country.
Grupo Mexico and Vedanta Resources are slugging it out for control over US copper company Asarco LLC. The Wall Street Journal has reported that Grupo Mexico has offered $1.3bn in cash to a court, which is hearing the bankruptcy proceedings against Asarco. Vedanta Resources, which is the holding company for the Sterlite group, has bid higher at $1.7bn but this is a combination of $1.1bn in cash and the rest in notes (fixed income instruments.