New Delhi: The Satyam board Chairman, Kiran Karnik, expects the Expression of Interest (EoI) for a strategic investor, to be invited by the end of this week.
“I hope that by the end of this week, we will be able to come out with something, either an EoI or inviting an initial bid. Of course, as per the Company Law Board order, we have to obtain the approval of the CLB,” Karnik told Business Line on Monday.
Asked what process would be adopted for Satyam stake sale, and whether the entire 51 per cent equity would be on the block through preferential allotment, Karnik declined to comment. “I have no comments at this point, as the process is sensitive,” he said.
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Media reports have suggested that the board could look at selling up to 31 per cent through a preferential allotment, and another 20 per cent through an open offer.
Satyam likely to announce mode of choosing partner
However, at least one potential suitor, Dr B. K. Modi, Chairman of Spice Corp, has made it amply clear that his company will be interested in Satyam only if the entire 51 per cent stake is offered through the preferential route.
“The entire money should go into Satyam…The CLB has already laid down the broad framework of the process to be followed. They have also recognised that any strategic investor would like to have adequate equity shareholding, which would enable the investor to constitute its own board. If there is deviation from this, we will reconsider our position,” Dr Modi had said last week.
Satyam board approves process to invite offers from suitors
Maytas hearing: Meanwhile, the hearing on Maytas Properties at CLB is slated for Tuesday. Maytas Infra Ltd, promoted by the family of B. Ramalinga Raju, has already been granted two days’ additional time, till February 26, to submit its reply, by CLB.
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