To add spice to the already spiced up Satyam episode, BK Modi’s Spice Group is interested to take a 51% stake for $408 million. The investigations are still being carried out. Everybody including the individual investors are finding it hard to put a number. In the midst of this I am not sure how the Spice group has a put a number to the company. Based on the Spice Group’s offer, the company is valued at $800 million.
Spice Group has exited the Spice Telecom business by selling it to Idea Cellular. It can use that cash to buy Satyam stake. Last week, L&T surprised everyone with its 8% purchase in the open market.
L&T now holds 12% of Satyam Computers. L&T’s interests are dual in nature. One: It either wants to increase its IT presence by acquiring Satyam. Two: It wants to average the price of its earlier purchase. The average price for L&T is around 80 rupee per share.
These are not the only companies, which are looking for Satyam. LIC has 4% stake in the company. iGate has openly expressed its interest to buy the company. Few others like Texas Pacific Group, General Atlantic and Tech Mahindra has expressed interest. Satyam is the hottest property on the market right now.
New Satyam board is not interested in selling the company in pieces. Within 2 months the company will be sold as a whole. Goldman Sachs and Avendus Advisors will evaluate all proposals and find a suitable deal. There is too much noise around this right now and I can’t wait to see the ending of this. By the way, the employee count is well above 50000.