Mahindra Satyam, Tech Mahindra merger by year-end

Davos, Jan 27: Mahindra groups two technology ventures, Tech Mahindra and Mahindra Satyam, would be merged by the end of this year, a senior group official said here. Also, the Mahindra name would certainly be there in the combined entity, although there have been no decision so far on whether to retain the Satyam name also, Mahindra Satyam Chairman Mr Vineet Nayyar told PTI here on the sidelines of the World Economic Forum Annual Meeting 2012. The integration would certainly happen pretty soon. The process would be initiated very soon and hopefully by the end of 2012, we may have one single company, said Mr Nayyar, who is also the vice-chairman, MD and CEO of Tech Mahindra. Mahindra Satyam is a strategic partner for the WEF Annual Meeting being held here. Asked whether the legal issues concerning the former auditors and former management of erstwhile Satyam Computer would affect the merger, Mr Nayyar said, I do not think so. The legal issues should not affect the process, why should they? On whether the group would continue with the Satyam brand name, given the negativity of the past attached to it, he said. Mahindra is more important to us than Satyam. The bad image associated with Satyam seems to have got over, because Mahindra has always been a very good name in terms of brand, corporate governance and everything else, he added. Asked if Satyam name would be dropped after the integration, he said, Nothing has been decided as yet, but one thing is certain that Mahindra name would remain there. On whether Tech Mahindra would be merged into Mahindra Satyam or the opposite would be done, he said a decision is yet to be taken on that. Consultants would suggest the process, but the final call would be taken by the management. Tech Mahindra acquired Satyam Computer Services in April, 2010 and later renamed the company Mahindra Satyam. In January, 2009, erstwhile Satyam Computers founder and then Chairman Mr B Ramalinga Raju admitted to fudging account books to the tune of thousands of crores of rupees.

Keywords: name change, merger,

Satyam renamed Mahindra Satyam

PTI Jun 22, 2009, 10.16am IST HYDERABAD: Software services provider Satyam Computer Services Ltd unveiled its new brand identity, "Mahindra Satyam", symbolising the amalgamation of the Mahindra Group's values with Satyam's expertise. "This rebranding exercise symbolises an amalgamation of the Mahindra Group's values with Satyam's fabled expertise, even as it retains that part of Satyam's identity which signifies commitment, purpose and proficiency of the organisation and its people," Mahindra Group ViceChairman and Managing Director Anand Mahindra said. The logo for the new brand would be adopted from the Mahindra Group, a company statement said. The "Mahindra Satyam" brand would be based on values such as good corporate citizenship, professionalism, customer first, quality focus, and the dignity of the individual, the statement further added. "With this initiative, we will witness steps by the Management to adopt and inculcate the values of performance and customer first, good corporate governance and citizenship, which are drawn from the Mahindra Group," Satyam Board Executive Vice-Chairman Vineet Nayyar said. With this synergistic approach, Mahindra Satyam will learn from the best management practices of the Mahindra Group while focusing on nurturing Satyam's innate skills and capabilities, Nayyar added.

Mahindra pegs Satyam loss at Rs 8k-cr under Raju

ET Bureau Sep 30, 2010, 06.20am IST Tags:
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united states| Satyam Computer Services Ltd.

HYDERABAD: Mahindra Satyam managed to sharply reduce its losses for 2009-10 and pull itself out of the hole into which it had plunged after founder Ramalinga Raju confessed to the biggest-ever fraud in Indian corporate history last year. The firm, which suffered a nearcatastrophic meltdown after Raju's revelations in January 2009, rode out a tough two-year period during which it lost clients, employees and posted a huge loss of Rs 8,000 crore in 2008-09. But it has clawed its way back to emerge as a smaller company (the sixth-biggest software services exporter compared with fourth biggest before the scam) but one with a fighting chance of making its way back to the top again. "This a major monkey off their back. Now the question is, how do they rekindle growth. They are now a $1.2-billion company and they don't have the resources to build a full-fledged services line," said John C McCarthy, vice-president and principal analyst at Forrester Research, referring to the company's disclosure of the results for the past two years. The results could not be disclosed earlier as its new owner, Tech Mahindra, needed time to vet the accounts completely. "Getting this monkey off their back allows them to do this and focus on growth," he added. "I would compare Satyam to a patient in an ICU, which we have pulled out. Now, it will take another year or two before it's healthy and running," Vineet Nayyar, chairman, Mahindra Satyam, told ET as he unveiled plans to nurse the company back to health with new initiatives, including a possible merger with the parent. Tech Mahindra bought out Satyam Computer Services as it was then called in May 2009 in a government-run auction, edging out Larsen & Toubro and Wilbur Ross, the famous US-based buyer of distressed assets. The results reveal the picture of a company that has put the bulk of its big problems behind but still faces the challenge of refurbishing its image to attract talent and clients. Its margins have started rising, costs are down and the management is confident of getting new clients. But attracting talent is not easy and it has lost traction in its main practice of SAP. The size of the balance sheet has also shrunk. In FY10, revenues plunged 40% to Rs 5,481 crore that analysts say is a potential cause for worry. The accounts were accompanied by over 20 pages of disclosures, representing some of

the bigger risks the company could face in the future. The Mahindra Satyam shares, which had rallied prior to the results, ended flat at Rs 98.90 on BSE on Wednesday. "There is substantial (over Rs 2700 crore) miscellaneous expenditure in the balance sheet that has not been written off, and about Rs 1,200 crore of advance claims from 37 companies. These can potentially be a huge cash loss for the company. In addition, there are legal liabilities, which are not quantifiable," said Sandeep Muthangi, analyst with brokerage firm IIFL. Most analysts expected Mahindra Satyam to report annual revenues of $1.2-1.3 billion and a net profit of nearly $136 million for the year ended March 2010. Analysts such as CLSA and Citigroup expected profit margins of anywhere between 5-10%, much lower than over 20% margins of larger rivals TCS, Infosys and Wipro. The company, which counts General Electric and General Motors among its major clients, has struggled to retain customers and key employees. Its larger rivals widened the gapboth in terms of new technology investments and new business.

Mahindra Satyam, SBI Holdings set up $50mn fund

Hyderabad-based IT consulting and outsourcing company Mahindra Satyam, in association with Japanese venture capital firm SBI Holdings (SBIH), has set up a $50-million (Rs 246.4 crore) joint investment fund to invest in ICT companies globally. The two firms have put in equal amount to raise the fund, which would be used for investing in companies that focus on emerging areas such as mobility, social networking, security solutions and cloud, according to a company release. CP Gurnani, chief executive of Mahindra Satyam, said, Investments in enterprise mobility and collaborative applications are the leading IT investment priorities for businesses in 2012 with infrastructure consolidation, virtualisation and security upgrades in the second tier. This path breaking fund, managed by SBIHs expertise in this domain, will be an accelerator for our growth. The fund would be subject to regulatory and other approvals. Kitao, chief executive officer of SBIH, said, Combining the two firms complementary strengths, the fund will create an investment platform which will enable the fund to capture lucrative opportunities in the global ICT sector. SBI Holdings, a global internet-based financial conglomerate, manages more than $3 billion. The companys scrip is currently trading at Rs 74.4 over the previous close of Rs 74.2. Source:http://business-standard.com/india/news/mahindra-satyam-sbi-holdings-set50mnfund/158520/on