Hyderabad: Tech Mahindra, the new owner of Satyam Computer Services, on Monday said it was excited about the prospects of the fraud-hit IT major and that restoring financial health was the priority.
After the first meeting with the government-appointed board, Chief of Mahindra Group, Anand Mahindra, said Satyam would remain a stand-alone unit in foreseeable future and its leadership would continue with marginal changes.
"Satyam is going to be a very strong and viable entity. I don't think it's a sinking ship. No longer. It may not be a racing car yet that is what we want to make it one. I believe that Satyam is on a way to very viable future," he told reporters after the interaction with the six-member government-appointed board.
Stating that there are still regulatory constraints, Mahindra declined to answer specific questions, especially about Satyam's liabilities.
“Despite the slowdown, the funding for winning the Satyam bid was raised within 72 hours in the local market and largely from non-banking sources. This was a difficult task given the magnitude of the resources required for this task in the current meltdown. It is also too early to comment on whether there will be job losses but retaining key staff is a priority,” he added.
He expressed hope that the company would win back clients and clinch new deals.
Vice-Chairman and Chief Executive of Tech Mahindra, Vineet Nayar, said the new chief financial officer (CFO) would be named in the next few weeks.
"We do believe that our business is good enough to achieve its objective. And if does need a certain amount of financial control, certain amount of restraint in expenditure then we will certainly impose it," Nayar stated.
The new buyer left it to A S R Murthy to continue as the CEO of the company. Murthy, appointed as CEO by the government-appointed board, has expressed his willingness to continue.
Tech Mahindra said it was too early to comment on whether there would be lay-offs.
Earlier, the board said an "open offer" would be announced on Tuesday to obtain an additional 20 per cent stake in the software major.
Tech Mahindra, which deposited Rs 2,910 crore in an escrow account Monday for a 31 per cent stake in Satyam, will see its total holding increase to 51 per cent after the open offer.
Satyam Board Chairman Kiran Karnik said the six directors appointed to the board by the government will continue in their posts till further orders from the Company Law Board. Tech Mahindra will appoint up to four new members to the current Satyam board.
"All six of us will continue on the board till further notice from the government. Govt has announced that four members from Tech Mahindra will also be joining the board," said board member Deepak Parekh.
The board has submitted a list of 100 key Satyam employees to Tech Mahindra, Karnik said, adding that no decision had been taken yet on the continuation of Ram Manyampati, who was the interim chief executive after disgraced former chairman B Ramalinga Raju stepped down.
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