Tech Mahindra, which has deposited Rs 2,910 crore to acquire 51 per cent stake in Satyam Computer Services, has said that it will allow Satyam to continue as an independent entity with a few changes.
The company, which has begun the acquisition process by forming an Integration Team and interactions on the transition, will announce a public offer to acquire 20 per cent on Tuesday.
Tech Mahindra needs to complete a few regulatory requirements in India, the US and Germany to take control of Satyam.
The acquisition of Satyam, a leader in important IT services verticals such as financial and enterprise-wide services, would propel Tech Mahindra, which was mostly focussed on telecom services, into a growth phase.
Mr A.S. Murty, the Chief Executive Officer, and Mr Ram Mynampati (President) would continue to hold their positions, Mr Vineet Nayyar, Chief Executive Officer of Tech Mahindra, said.
Addressing a press conference here on Monday, he said that winning back investor confidence, regaining the financial health and retaining key talent topped the agenda.
Mr Nayyar said the company was on the lookout for a Chief Financial Officer, a post that fell vacant after the arrest of Mr Vadlamani Srinivas, one of the key accused in the Rs 7,136-crore fraud.
The top brass of Tech Mahindra, led by Mr Anand Mahindra, Chairman, and Mr Vineet Nayyar, met the six-member board and other top Satyam executives in the morning and discussed transition plans.
Apart from Mr Nayyar, Mr C.P. Gurnani, (President – International Operations); Mr Sanjay Kalra (President – Strategic Initiatives); and Mr Ulhas Yargop (Director, Tech Mahindra and President of the IT Sector, Mahindra Group); attended the board meeting. They will be inducted on to the board after the formalities are completed.
Fund-raising
Mr Anand Mahindra said that the company was able to raise Rs 2,300 crore in the domestic market from non-banking sources in just three days. Of this, it raised Rs 875 crore through non-convertible debentures and commercial papers.
Source: The Hindu Businessline