Four Tech Mahindra representatives - Vineet Nayyar, vice-chairman and managing director; CP Gurnani, president, international operations; Sanjay Kalra, president, strategic initiatives; and Ulhas Yargop, director and president of the IT sector, Mahindra Group, are expected to be nominated to the Satyam board.
The four, who were expected to be nominated to join the Satyam board upon the closing of the initial allotment, were invited as special invitees to attend Satyam's board meeting held today.
Representatives of Tech Mahindra met with the board of directors and key executives of Satyam Computer Services Ltd at their headquarters in Hyderabad to finalise plans for Tech Mahindra's acquisition of a controlling stake in Satyam and to discuss important transition issues.
Anand Mahindra, chairman of Tech Mahindra, accompanied by senior executives of the Mahindra Group and Tech Mahindra, initiated the process at the Satyam campus today.
Following the Company Law Board's approval on 16 April Tech Mahindra as the successful bidder to acquire a controlling stake in Satyam,
Tech Mahindra, which emerged the successful bidder for Satyam Computer Services on 16 April, has deposited the initial subscription amount of approximately Rs1,756 crore (approx $351 million) and the total funds necessary to consummate the mandatory public offer being approx Rs1,154 crore ($231 million), in separate escrow accounts today.
Tech Mahindra is expected to announce plans for the public offer, shortly.
''I would like to welcome the Satyam family to the Mahindra Group and thank all its stakeholders for standing by the company during this difficult period. The Mahindra Group is recognised for its resilience, tenacity and focus on customer centricity, and together with Satyam associates, we will work to quickly reinforce confidence in the company and build a better future,'' said, Anand Mahindra, vice chairman and managing director, Mahindra Group and chairman of Tech Mahindra.
''The board and the Indian government worked together to induct a strategic investor in record time. I am pleased to learn that Tech Mahindra is eager to maintain that pace. They've lost no time in moving onto next steps,'' said Kiran Karnik, chairman of Satyam.
Under Tech Mahindra's plans, Satyam will continue to operate as a stand-alone unit and its leadership will continue to drive operations.
''We have been impressed by the extraordinary skill and dedication of the Satyam leadership, and indeed, of their entire workforce. We have complete confidence in Satyam's executive leadership to restore the company and take it to new levels of success,'' said Vineet Nayyar, vice chairman, managing director and CEO of Tech Mahindra.
''We would like to reassure stakeholders that priority focus is being given to retaining critical customer-facing resources, so that the customer experience continues undisturbed,'' he said, adding, ''This is also a new beginning for Satyam – and for Tech Mahindra. Both companies will now have access to enhanced talent and scale to compete in the global market.''
Once nominees of Tech Mahindra are appointed to the board upon the closing of the initial allotment of shares to Tech Mahindra, they will focus on appointing a CFO and look at strengthening corporate governance in the company apart from visiting / meeting customers and Satyamites at major locations, worldwide, the company said in a release.
Tech Mahindra's investment in Satyam marks an expansion of the firm's interests in other vertical markets, including financial services, manufacturing and healthcare, among others. Tech Mahindra, which partners BT, had been focused on the telecom vertical so far.
Its immediate priorities will include retaining current customers and win back business lost as a result of the crisis; retain key associates; win new business; and explore the best ways to realise operational and structural synergies between the two companies, the release noted.
Mahindra and his colleagues toured Satyam's Hyderabad campus and addressed associates globally through a live telecast and met with key leaders.
Tech Mahindra was advised in a lead role by Kotak Investment Banking and supported by UBS. P&A Law Offices acted as Indian legal counsel to Tech Mahindra. Jones Day acted as US legal counsel to Tech Mahindra.
Satyam was advised by Goldman Sachs and Avendus. Amarchand Mangaldas acted as Indian legal counsel to Satyam. Latham & Watkins acted as US legal counsel to Satyam
Tech Mahindra is a leading provider of solutions and services to the telecommunications industry, is majority owned by Mahindra & Mahindra Limited, with British Telecommunications plc owning a 31 per cent stake.
With total revenues of Rs3,766 crore in the year ended 31 March 2008, Tech Mahindra is India's 6th largest software exporter, and serves telecom service providers, equipment manufacturers, software vendors and systems integrators.
Assessed at SEI-CMMi Level 5 and PCMM Level 5, Tech Mahindra has over 24,000 professionals with domain expertise and in-depth technology skill-sets and has principal offices in the UK, United States, Germany, the UAE, Egypt, Singapore, India, Thailand, Taiwan, Malaysia, the Philippines, Canada and Australia.
Satyam, a leading global business and information technology services company, offers consulting, systems integration, and outsourcing solutions to clients in numerous industries across the globe. Satyam has functional expertise in engineering and product development, supply chain management, client relationship management, business process quality, business intelligence, enterprise integration, and infrastructure management, among other key capabilities.
Satyam has development and delivery centers in the US, Canada, Brazil, the UK, Hungary, Egypt, the UAE, India, China, Malaysia, Singapore, and Australia.