The government appointed board of fraud hit Satyam Computer Services has laid down norms for winner of the bid which include lock-in on sale for 3 years. Other norms include not to pledge shares to raise debt, no sudden lay-offs and cash in hand for immediate infusion, reports Economic Times. These points have been sent in Requests For Proposal to the registered
bidders of Satyam. These rules are also applicable to parties floating a special purpose vehicle (SPV) to buy into Satyam.
Any change in shareholding of Satyam within the next three years would require approval from market regulator Sebi and the Company Law Board (CLB). Currently those in the race include domestic firms L&T, Tech Mahindra and BK Modi-promoted Spice Group and US-based iGate
Corporation. Others like private equity funds Texas Pacific Group and Kohlberg Kravis & Roberts (KKR), and international giants IBM and HP are also said to be in the race.
The registered bidders now have to give proof of availability of Rs 1,500 crore ($190 million). Along with this, the bidders also have to submit a detailed expression of interest (EOI) by March 20. After this the board will provide the detailed information about Satyam so that
participants can submit the financial bids.
The board has also said that the legal liabilities and expenses will be responsibility of the bidder. Also the qualified bidders will have to have to give a Rs 100 crore guarantee when submitting their final financial bid, which they wont be allowed to change once submitted.
Also before the preferential allotment, the successful bidder will have to deposit the funds or may find its bid disqualified.