Tech Mahindra declared highest bidder for Satyam

Hyderabad: Tech Mahindra, India’s 6th largest software exporter, has been declared as the highest bidder for Satyam at a price of Rs. 58/share, after a global competitive bidding process, which concluded today subject to approval of the Company Law board and other requisite approvals. Satyam’s acquisition marks the entry of Tech Mahindra, which has so far focused on the telecom vertical, into other verticals such as Financial Services, Healthcare, Manufacturing etc.

Mr. Anand Mahindra, Chairman of Tech Mahindra commented, “This is a landmark development for Tech Mahindra and I am delighted that we are the highest bidder for Satyam. The Mahindra Group is known for its good governance and the Tech Mahindra team has demonstrated its outstanding customer centric focus over the last many years, I am sure that Satyam’s customers and employees will welcome this news. Looking forward, we are confident that this will lead to a positive transformation in Satyam’s business.”

“On behalf of all Satyamites and their families, we congratulate Tech Mahindra on being the highest bidder. The selection of the highest bidder, in a fair, open and transparent process, signals a new stage for the Company in its progress towards stabilization and growth. We hope this will infuse greater confidence and comfort amongst customers, who continue to be happy with Satyam's excellent service delivery. This event ought to dispel the anxiety of all stakeholders as it re-positions the Company’s commitment to revival and good governance.” said Kiran Karnik, the Chairman of the Board.

Welcoming the sale of 51% stake in Satyam to Tech Mahindra, Mr Chandrajit Banerjee, Director General, CII said that “Tech Mahindra, a Rs 3,800 crores company is a competent IT services provider. This would help Satyam come back to its zenith. The takeover by Tech Mahindra would also immensely help Satyam regain its shareholder value and would also benefit its employees and customers.”

Commenting on the business outlook from Satyam perspective, Mr. Vineet Nayyar (Vice Chairman and CEO of Tech Mahindra) said “Satyam has immense experience & diversified geographical presence across different verticals. Satyam’s and Tech Mahindra’s profiles complement each other. After we hear the decision of the company law board, we will work with Satyam’s customers, business partners, employees and other stakeholders to restore confidence in the company and to create a platform for future growth.”

Board members Mr. Deepak Parekh and Mr. S.B. Mainak abstained from discussion regarding the selection of the highest bidder. This was due to possible conflicts of interests since Deepak Parekh sits on the board of directors of the controlling shareholder of one of the bidders, while S.B. Mainak is the executive director of a significant shareholder of another bidder.

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.