Mumbai law firm AZB & Partners has landed the main legal role in a $1 billion acquisition in India’s technology sector.
The deal, which was reported Wednesday by The Am Law Daily, will see Pune-based information technology outsourcing company Tech Mahindra Ltd. take over the former Satyam Computer Services Ltd. in an all-stock transaction.
Tech Mahindra, a joint venture between U.K. telecom company BT Group PLC and Mumbai conglomerate Mahindra Group, bought a majority stake in its rival Satyam for $600 million in 2009 in the aftermath of an accounting scandal that led to the resignation of Satyam’s former chairman, B. Ramalinga Raju. Satyam was renamed to Mahindra Satyam, and Raju was later charged with forgery and fraud.
This week’s deal, in which AZB Mumbai partner Abhijit Joshi is acting for Tech Mahindra, will give Mahindra Group a 26.3-percent stake in the combined company. BT will own 12.8 percent and public shareholders will hold most of the remainder, according to a statement by Tech Mahindra. The statement does not name any legal advisors besides AZB, and a partner of the law firm, Zia Mody, said via email she is not aware of any other law firms’ involvement.
Jones Day and Latham & Watkins respectively advised Tech Mahindra and Satyam in the 2009 sale, completed via an Indian government-sponsored auction. Satyam, whose depositary shares were traded on the New York Stock Exchange, also hired Indian law firm Amarchand & Mangaldas & Suresh A. Shroff & Co. to advise on issues arising from the accounting fraud, as well as Wachtell, Lipton, Rosen & Katz for help with shareholder class action suits filed in the U.S., The Am Law Daily reports.