The merger of Mahindra Satyam with Tech Mahindra is on the cards. The Mahindras are likely to go ahead with the plan after the restatement of the financials of the Hyderabad-based Mahindra Satyam.
We have the intent and desire to merge, Mr C.P. Gurnani, Chief Executive Officer of Mahindra Satyam, said.
The merger will propel the duo to the top league in the Indian ICT industry.
In an informal chat with reporters here on Monday, he admitted that the Mahindras were seriously thinking about the merger.
He, however, refused to divulge whether the proposal was discussed at the boards of the two companies.
We need to get the approvals from the AGMs and other statutory bodies, he said.
Though he did not indicate any timeline for the merger, it is likely to happen soon after the fraud-hit Satyam announces its financials. The Company Law Board has granted time till June 30, 2010, for Satyam to file its accounts.
As a prelude to the merger, the duo is projecting a combined positioning as an ICT (Information, Communications and Technology) player, offering complete communication and IT solutions to the clients.
Mahindra Satyam has appointed Bain & Co as consultants to prepare a plan to win back the old customers and to offer better transformational experience and new value proposition to the new and existing customers.
Responding to a question on NYSE listing, he said there was no move to delist the company from the US bourse.
On the Upaid row, he said the company was continuing talks with the British firm for an out-of-court settlement.
On the uncertainty in the deal with the FIFA for technology sponsorship, Mr Gurnani said the company had begun renegotiations with FIFA over a few terms. We are hoping to complete it by the first week of November, 2009, he said.
Refusing to go into the financials and number of associates, Mr Gurnani said the staff number was inflated.
Stating that there were signs of positive signals from the industry indicating a recovery, he said companys BPO arm had added 1,200 people in the last nine months. While 100 clients decided to leave following the crisis, over 400 clients still remained with the company.