The Spice Group will today begin negotiations for a 51% stake in the beleagured IT services group Satyam and is ready to spend around 20 billion rupees ($409.6 million).
Spice, headed by entrepreneur B.K. Modi, will have to convince the Securities and Exchange Board of India (SEBI) to relinquish the shares. SEBI took control of Satyam after its chairman admitted falsifying the accounts in one of India's biggest ever business scandals.
Spice intends to push for an open auction process, a group representative has told India's Business Standard. The group will also recommend that the proceeds from the sale be pumped back into Satyam's operations.
It's not the only firm bidding for Satyam. Hindujas, Larsen & Toubro, Tech Mahindra and Essar have also expressed an interest.
Meanwhile, Spice yesterday acquired a 100% stake in the Indian arm of Dubai-based mobile retail chain Cellucom, reports the Economic Times. The share-swap deal is not likely to affect its acquisition of the Satyam stake, as no cash will trade hands, but Spice has committed to investing $20 million in the venture this year.