Feb. 21 (Bloomberg) -- Satyam Computer Services Ltd., the Indian software provider at the center of the nation’s biggest corporate fraud inquiry, will seek approval from regulators next week for its plan to sell a stake to a strategic investor.
“The board today approved the process to be followed for inviting a strategic investor and decided to seek regulatory approvals early next week,” the Hyderabad-based company said in an e-mailed statement today. “Upon receiving these clearances, the board would announce the process to be observed.”
Satyam’s government-nominated board wants to secure the company’s viability by bringing in a strategic investor. The computer-services provider to Nissan Motor Co. and Cisco Systems Inc. has lost three-fourths of its market value since former chairman and founder Ramalinga Raju said Jan. 7 he’d falsified accounts and inflated assets by more than $1 billion and quit.
India’s Company Law Board on Feb. 19 approved Satyam’s plan to increase its capital in order to sell at least 26 percent to a strategic investor via preferential allotment of shares.
The company had won orders worth $250 million in the last seven weeks, including one $50 million contract, it said today.
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