SEBI relaxes norms for takeover of Satyam by Tech Mahindra
SEBI said that it has relaxed the Takeover Code to facilitate the acquisition of Satyam Computer by Tech Mahindra, which has won the bid to acquire the IT firm.
By PTI |
MUMBAI: Market regulator SEBI on Wednesday said that it has relaxed the Takeover Code to facilitate the acquisition of Satyam Computer by Tech Mahindra, which has won the bid to acquire the IT firm.
Among other things, SEBI has exempted Satyam from providing the status of corporate governance while making a public announcement under the Code.
Pursuant to the order, Satyam has been exempted from providing due diligence certificates by merchant bankers and disclosing its latest financial data in the offer document, as required under the Takeover Regulations.
Following the exemptions granted by SEBI, Satyam today came out with a public announcement allowing Tech Mahindra and its subsidiary Veturbay Consultants to acquire 20 per cent shares from the public to increase its holding to 51 per cent in the Hyderabad-based IT company.
SEBI's permission follows request by Satyam for exemption and relaxation from the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.
Among other things, SEBI has exempted Satyam from providing the status of corporate governance while making a public announcement under the Code.
Pursuant to the order, Satyam has been exempted from providing due diligence certificates by merchant bankers and disclosing its latest financial data in the offer document, as required under the Takeover Regulations.
Following the exemptions granted by SEBI, Satyam today came out with a public announcement allowing Tech Mahindra and its subsidiary Veturbay Consultants to acquire 20 per cent shares from the public to increase its holding to 51 per cent in the Hyderabad-based IT company.
SEBI's permission follows request by Satyam for exemption and relaxation from the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.
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