‘Tech Mahindra Takeover

Satyam’

Mukesh Pratap Singh

RollNo.-MCM2009009
Course-PGDM (C)
JICM
Business Definition for ‘Takeover’:

“An acquisition or gaining control of

a corporation through the purchase
or exchange of stock.”
 About

‘SATYAM’
Satyam Computer Services Ltd
founded in 1987 by
‘B.Ramalinga Raju’

September 16, 1954 (1954-

09-16) (age 54)
Born
Bhimavaram,
Andhra Pradesh, India

Residence Hyderabad, India

Nationality Indian

former Chairman,
Occupation Managing Director of
Satyam Computers

Net worth ▲ US$495 million (2004)[1])

Spouse(s) Nandini
Company Timeline:
1987
- Incorporated as a Private Limited Company
1988-1992
- IPO
1993-1996
- Satyam Technology Center established
1997-2000
- Presence in 30+ Countries
2001-2004
- Founded Satyam BPO
•2005-2008

-Acquisition of Bridge Strategy,Citisoft, Knowledge Dynamics, Nitor

Solutions, S&V Management Consultants.

-30+ Global Solution centers

•2009

-Satyam plunged into a crisis in January 2009.

-In March 2009 the company announced it would begin soliciting bids
from potential buyers.

-In June 2009, the company unveiled its new brand identity “Mahindra
Satyam”.
Controversies involving Satyam
Satyam plunged into a crisis in January 2009 after its
founder, B Ramalinga Raju, stated that ‘the
company's profits had been overstated ’.

07 Jan - Company chairman declared that the

company’s profits had been overstated for several years.

On January 7, 2009, Chairman Raju resigned after

publicly announcing his involvement in an
accounting fraud.
Raju confessed that Satyam's balance sheet of 30
September 2008 contained:

•inflated figures for cash and bank balances of Rs 5,040

crore as against Rs 5,361 crore reflected in the books.

•an accrued interest of Rs. 376 crore which was non-

existent.

•an understated liability of Rs. 1,230 crore on account of

funds was arranged by himself.

•an overstated debtors' position of Rs. 490 crore as

against Rs. 2,651 crore in the books.
 Satyam Acquisition:

In March 2009 the company announced it would begin

soliciting bids from potential buyers.
Companies involved in Bids:

Tech Mahindra (Mahindra Group)

Larsen & Tourbro.
 RESULTS:

In April 2009, Tech Mahindra emerged as the highest

bidder to acquire a controlling stake in Satyam.
13 April - Tech Mahindra acquired majority stake in
Satyam.
Tech Mahindra Satyam takeover approves:

Company Law Board(CLB) approves Tech Mahindra

take over of The Rs.58/ share on Satyam Computers.
Tech Mahindra, sixth largest software exporter.
Tech Mahindra acquiring the 31% in Satyam
Computer Services Ltd for Rs.1756 crore.
Satyam Becomes Its New Brand
Identity – “Mahindra Satyam”

•21 June - New brand, “Mahindra

Satyam” launched
C. P. Gurnani

(CEO of Mahindra Satyam)

Board Members:
Anand Mahindra (Vice Chairman & Managing
Director, Mahindra Group)
Vineet Nayyar (Executive Vice Chairman of Tech
Mahindra Limited)
C. Achuthan (independent director)
T. N. Manoharan (independent director)
C. P. Gurnani (CEO of Mahindra Satyam)
Sanjay Kalra (CEO of Tech Mahindra Limited)
Ulhas N. Yargop (President, IT Sector and
Member, Group Management Board of Mahindra
& Mahindra Ltd.)
Industry Presence:
Mahindra Satyam provides services in the following areas:

Aerospace and Defense

Banking, Financial Services &Insurance
Energy and Utilities
Life Sciences & Healthcare
Manufacturing, Chemicals & Automotive
Public Services & Education
Retail and Consumer Packaged
Telecom, Infrastructure, Media and Entertainment &
Semiconductor
Travel and Logistics & Industrial Equipment
Competencies:
Mahindra Satyam offers the following ‘horizontal’
services.

Extended Enterprise Solutions

Web Commerce Solutions
Business Intelligence Services
Quality Consulting
Strategic Outsourcing Services
Industry Native Solutions
BPO
Engineering Services
THANK YOU