Tech Mahindra wins bid for Satyam takeover
|
|
Tech Mahindra, through M/s. Venturbay Consultants, a special purpose vehicle set up for this specific purpose, won the race for acquiring a controlling stake in Satyam Computer Services by bidding at Rs. 58 per share. The company would have to pay Rs. 17.56 billion to acquire 31 % stake in Satyam Computer Services and would have to make an open offer to purchase a further 20% stake subsequently at a price which would not be less than the bid price. It is estimated that Tech Mahindra would be required to pay Rs. 28.9 billion for a 51 % stake in Satyam, if the remaining 20% stake is also purchased at the same price. The second highest bid was Rs. 45.90 by Larsen & Toubrowho already hold a 12 % stake in the company.
This bid would also require approval by the Company Law Board of India. Tech Mahindra is required to deposit the full amount of Rs. 17.56 billion into Satyam’s bank account by 21 April and the amount required for the open offer into an escrow account. Tech Mahindra can take over control of the management once the bid amount is paid by them and they would have full freedom in matters relating to retention of staff as well as in bringing in another strategic partner. However, they would not be allowed to dispose of the assets in a piece meal manner.
Tech Mahindra is owned by the Indian auto major Mahindra& Mahindra, in partnership with British Telecommunication. The company was the sixth largest software exporter in India, as per the figures released by NASCOM in 2007. However, its main area of operations is in the telecom sector and gaining the controlling stake in Satyam makes the company much more diversified with entry into areas as manufacturing, retail, automotive and logistics. This acquisition also catapults Tech Mahindra into the league of top five IT majors in the country. |
| Reliance commences gas production from KG basin |
Reliance Industries Limited (RIL) commenced production of gas from Dhirubai 1 and 3 discoveries of D6 block in Krishna Godavari basin, located off the eastern coast of India. The initial production is at levels of 10 million metric standard cubic meters per second (mmscmd) and is expected to increase to 80 mmscmd by 2010. The gas from the offshore source would be transported to the onshore facility at Gadimoga from where it would be delivered to the east - west pipeline of Reliance Gas Transportation Infrastructure Limited (RGTIL). The gas would be sold to fertilizer and power generation companies at price prescribed by Petroleum and Natural Gas Regulatory Board.
This is a major achievement by RIL who have succeeded in producing gas with in six and half years of the discovery, as against the globally accepted norms of nine to ten years for similar deep water production facilities. This production is also expected to save India US $ 9 billion every year in payments for oil imports and would also go a long way in boosting the energy security of the country.
|
Airbus manufacturing hub in India
The European aircraft manufacturer Airbus plans to build a manufacturing base in India over the next 3-4 years. Airbus currently employs 200 highly-skilled employees at its design centre in Bangalore. The headcount is expected to double to 400 in the next few years.
|
Microsoft partnership with HCL INFOSYstems
Microsoft India has announced a partnership with HCL Infosystems to provide its Enterprise Resource Planning (ERP) solutions to small and medium businesses (SMBs) in India. HCL Infosystems will make Microsoft Dynamics NAV Business Essentials solution available through its various points of presence and also implement it for the SMBs. |
|
Daimler to buy out Hero’s stake in joint venture
Daimler AG announced their decision to buy their partner Hero group’s stake in the joint venture that the two groups had set up – Daimler Hero Commercial Vehicle Limited - to manufacture commercial vehicles in India. Daimler’s move followed the decision taken by the Hero group to pull out of the joint venture so as to concentrate on its core two wheeler business in the light of the economic downturn. It has been reported that Daimler AG would pay Rs. 1050 million to buy Hero group’s 40% stake in the joint venture. Daimler Hero Commercial Vehicle Limited was set up in April 2008 and the plant for manufacturing commercial vehicles is currently under construction at Orgadam, near Chennai. The project has an investment of Rs. 40 billion and is expected to produce 70,000 trucks in the 11-48 MT range.
|
GE Expands in India
GE, the American technology and services conglomerate, has expanded its research and development capabilities in India. The company has opened a new facility at the John F Welch Technology Centre in Bangalore, GE’s largest integrated multidisciplinary R&D centre outside of the US. The new facility called Odyssey has bagged Leadership in Energy and Environmental Design gold certification and will house 2000 scientists and engineers
|
India global hub for Philips
Philips is planning to make India one of its global production hubs for the manufacture of medical equipment for medical equipment. The company plans to invest substantially on up-grading its acquired manufacturing facilities and increasing their capacity, with plans to start shipping them globally in another 18-24 months. |
|
