Tech Mahindra, the highest bidder for a majority stake in Satyam Computer Services, said on Monday that the current management of the troubled outsourcer, including its CEO, will continue after the company's takeover.
Satyam will also continue as an independent entity for the foreseeable future, Vineet Nayyar, vice-chairman and CEO of Tech Mahindra, told reporters in Hyderabad on Monday.
Satyam's top priority will be to retain clients and win back lost business, Nayyar said.
In February a government-nominated board that ran the company appointed A.S. Murty, a Satyam executive of 15 years, as the company's new CEO. The board was enacted to manage the company after its financial scandal became public.
Satyam is looking for a new chief financial officer (CFO), Nayyar said. The former CFO, Vadlamani Srinivas, resigned for his alleged involvement in the scandal at the company.
Satyam has as yet to decide whether any staff will be laid off. Kiran Karnik, the government-nominated chairman of the y company's board, was quoted in some media reports last week as saying that Satyam has excess staff. Karnik said on Monday that management would decide whether to lay off staff or deploy them across new business.
Tech Mahindra is also an Indian outsourcer but gets most of its business from the telecommunications industry.
Satyam's board said on Monday that it had received from Venturbay Consultants, a Tech Mahindra subsidiary, the funds for the first round of 31 percent equity in the company. The company said it would issue equity to the bidder after some regulatory conditions are met.
Tech Mahindra will appoint four of its representatives to the Satyam board. But these members will be a minority group, as the six board members appointed by the government will also continue until further notice, by a government ruling.
Tech Mahindra is required by the rules to also make a public offer to buy 20 percent of Satyam's equity from its other shareholders. The funds for that open offer were also deposited in an escrow account, as required by the bidding rules.
At the end of the open offer, Tech Mahindra will own 51 percent of Satyam's equity.
The announcement of the open offer is scheduled for Tuesday, Satyam's board said.