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Tech Mahindra
Recent Posts
Mahindra Satyam spreads Diwali joy, reverses pay cuts
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Satyam Computer Services (rebranded as Mahindra Satyam) today announced that it will restore variable pay to all its employees. The decision will win the hearts of all Satyam’s employees, who were devastated by the scam. After the relief that came with Tech Mahindra acquiring the company, getting back their monetary benefits will be a boost. Continue Reading →
Filed under: Companies, Top News, Mahindra Satyam, Satyam, Satyam Scam, Scam, Tech Mahindra
Tech Mahindra gets control over Satyam board
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The government has further reduced its role in Satyam Computer Services (rebranded as Mahindra Satyam), after Tech Mahindra completed the open offer process and then followed up by hiking its stake through a preferential allotment. That completes a major part of its task ensuring that Satyam stays afloat.
Filed under: Companies, Quick News, M&A, Mahindra Satyam, Satyam, Satyam Scam, Scam, Tech Mahindra
Tech Mahindra-Satyam: India’s first leveraged buyout?
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At first, it might seem that Tech Mahindra’s plans did not work out, as its open offer failed, leaving it with a 43% stake instead of a 51%. This setback hardly matters, however, if the two companies merge. A merger could mean that the group could repay the entire debt taken for the acquisition, using Satyam’s shares held by Tech Mahindra, if it so wishes.
Filed under: Companies, Information Technology, News Analysis, M&A, Open Offer, Preferential Allotment, Satyam, Satyam Scam
Tech Mahindra’s open offer to Satyam shareholders closes
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When Tech Mahindra emerged as the successful bidder for the scam-ridden software company Satyam Computer Services, it seemed like the subsequent open offer would be a success.
But Satyam’s share price rose significantly, in the interim, as investors began to regain some confidence in its future, especially after its provisional results for the third quarter were made public. The company’s profitability was much better than what was feared. While the open offer was at Rs 58 the share closed today, the last day of the offer, at Rs 74.
Filed under: Companies, Top News, Open Offer, Preferential Allotment, Satyam, Tech Mahindra
Satyam Computer Services gets a new brand: Mahindra Satyam
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Satyam Computer Services gets a new brand, Mahindra Satyam accompanied by the Mahindra flagship logo. It is not clear if the company will change its name too, as nothing is mentioned in the press release. Branding exercises can appear hyped and meaningless to some but at times, the symbolism can be quite revealing.
Filed under: Companies, Quick News, Anand Mahindra, Mahindra & Mahindra, Satyam, Satyam Scam, Tech Mahindra
Four Tech Mahindra nominees appointed to Satyam Computer’s Board
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Tech Mahindra’s acquisition of Satyam Computer Services became more formal, after the appointment of four directors on its board. Vineet Nayyar, CP Gurnani, Sanjay Kalra and Ulhas N Yargop, all senior management personnel from Tech Mahindra, have been appointed on Satyam’s board effective June 1, 2009. The total board strength will go up to 10, including the six government appointed nominees, with Kiran Karnik as the chairman. Over a period of time, the government’s role in the board can be expected to diminish as they hand over charge to the new owners. Continue Reading →
Filed under: Companies, Quick News, Satyam Scam, Scam, Tech Mahindra
Tech Mahindra shows the money, brings $581mn to complete Satyam acquisition
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Satyam Computer Services has announced that Tech Mahindra has deposited $351mn in an escrow to fund the preferential allotment for a 31% stake. It has also deposited $231mn required for the 20% open offer. That completes the funding requirements for the Satyam acquisition. Tech Mahindra can now appoint four of its nominees on the Satyam board who will join the six government appointed nominees. Satyam will allot to Tech Mahindra the shares required for the 31% stake, after getting Sebi approval and fulfilment of other conditions.
Filed under: Companies, Quick News, M&A, Satyam, Tech Mahindra
Satyam gets Company Law Board approval for deal, gets 9 more months to declare results
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Tech Mahindra’s acquisition of Satyam Computer Services is likely to proceed smoothly, as it is a government nominated board at the helm of affairs. That was evident in the speed with which the Company Law Board approved the preferential allotment to Tech Mahindra, to give it a 31% stake in Satyam.
Tech Mahindra can appoint four nominees on Satyam’s board while the existing six government nominees will continue to hold their positions. The new directors will get the same immunity that the existing directors have from any litigation in the country.
Filed under: Companies, Top News, Company Law Board, M&A, Satyam, Satyam Scam, Tech Mahindra
Satyam Computer sold to Tech Mahindra
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Satyam Computer Services has found a new home in Tech Mahindra. It will pay Rs 58 a share, or a premium 23% premium over Friday’s close, to acquire a 31% stake in Satyam. That speaks for Satyam’s value even after all the fudging of books or for Tech Mahindra’s desire to acquire Satyam. Either way, it’s an outcome that will please Satyam’s shareholders, board and the government itself. The shareholders got a good price, the board has managed the sale process without any glitches and the government would be happy that it remains in Indian hands.