Tech Mahindra to finance Satyam deal through debt

MUMBAI: Tech Mahindra will fund more than three-fourth of Rs 2,890 crore from debt to acquire Satyam Computer for which it outbid Larsen and Tourbo with an offer of Rs 58 a share.

"Tech Mahindra has cash available through internal generation of more than Rs 700 crore. We have the ability to raise debt at the SPV level and at the Tech Mahindra level. We have to pay Rs 2,890 crore at Rs 58 a share to acquire 51 per cent stake. If you take out Rs 700 crore out of that, the rest we can arrange ourselves," Mahindra & Mahindra CFO Bharat Doshi said today.

This rules out Tech Mahindra joining hands with any private equity player to fund the deal.

Anand Mahindra, Chairman of Mahindra Group, said he would personally reach out to top brass of Sataym clients Citigroup, General Motors and Cisco to restore customer confidence.

Tech Mahindra closed at Rs 359.45, up by 12.31 per cent on the Bombay Stock Exchange today.