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Apr 15, 2009, 10.10 AM IST
Terming the Satyam bid as a game-changer of Tech Mahindra, Anand Mahindra said the company would reach out to the employees and customers of Satyam. Vineet Nayyar, CEO of Tech Mahindra said there was no overlap between its and Satyam's clients.
After Satyam Computer Services held a press conference at its headquarters, it was now the turn of Tech Mahindra, the company that put in the highest bid for Satyam — and will pick up 51% stake in the company, post formalities.
Terming the bid as a game-changer of Tech Mahindra, Anand Mahindra said the company would reach out to the employees and customers of Satyam. He also clarified that, as things stood now, Tech Mahindra was the highest bidder but not the winning bidder. “We hope to be the winning bidder once the Company Law Board will clear the bid.”
“We have taken on a challenge and we are going to make it work,” Mahindra said, and thanked Satyam’s clients for staying on despite the Satyam facing rough weathers after the Rs 7,000-crore scam that hit the company in January. “We will reach out to Satyam’s customers including CISCO, Citi and General Motors.”
Also read: Tech Mahindra wins Satyam bid
Mahindra added that British Telecom, an investor in the company, was supportive of the deal. When asked what was the key for the company emerging as the highest bidder, he said, “Being low-key about our interest in Satyam has helped us,” he said.
No overlap between two cos
Vineet Nayyar, CEO of Tech Mahindra, said the deal gives Tech Mahindra “a completely complimentary partner.” He added that there was no client overlap between Satyam and Tech Mahindra. “Satyam's clients will be new acquisitions for Tech Mahindra,” he said.
Nayyar also added that the company had taken into account Satyam’s legal liabilities and priced its bid accordingly.
Confident of raising debt
Bharat Doshi, the group CFO, said Tech Mahindra has cash generation of over Rs 700 crore internally, and that its balance sheet had potential for raising debt.
View the press conference in attached video.
May 21 2013, 13:56
- in Results Boardroom
May 21 2013, 11:05
- in MARKET OUTLOOK