Billionaire investor Wilbur Ross has acquired the second-largest stake in Satyam Computer Services Ltd?s US securities, after missing out in an April auction for control of the software developer.
Invesco Private Capital Inc, controlled by Ross, bought 1.8 million American depository receipts, according to filings to the Securities & Exchange Commission. The securities, equivalent to two of Mahindra Satyam?s Indian shares, were worth $3.11 apiece at the end of June, according to the filing.
Ross in April offered the equivalent of 80 cents per depository receipt for a controlling stake.
Satyam share prices have more than doubled since software provider Tech Mahindra Ltd won the auction on April 13.
Tech Mahindra, through its 100% subsidiary Venturebay Consultants, bought 31% of Satyam for Rs 1,756 crore. An open offer later for 20% more stake made the deal worth Rs 2,889 crore.
Tech Mahindra outbid Ross and Larsen & Toubro Ltd, another large investor in Satyam, with a $579 million offer in April. L&T chairman AM Naik told shareholders in Mumbai on Friday L&T might sell its stake in Mahindra Satyam by March end. L&T had invested about Rs 640 crore in Satyam at an average price of Rs 79 per share.
Ross, who made his fortune taking over bankrupt steel, coal and textile firms, offered Rs 20 and L&T bid Rs 45.9 a share for Satyam in April. Ross didn?t respond to e-mailed questions about his investment in Satyam.
The investment makes Invesco the second-largest shareholder in Satyam?s depository receipts, behind Security Investors LLC, according to data compiled by Bloomberg.
Ross invested in SpiceJet Ltd in July last year.
In February 2007, Ross acquired OCM India Ltd, a worsted suiting maker, for about $37 million, in his first investment in India.