MUMBAI: A day after non-resident industrialist BK Modi announced his intention to join the race to takeover Satyam, the Hinduja Group joins the fray Five facts about Satyam to acquire the fraud-hit Satyam Computer Services. The group has sent a formal communication to the investment bankers of Satyam expressing its interest in Hyderabad-based software exporter. A top Hinduja Group official confirmed the development to ET.
Hinduja Global Solutions, the new industry arm of the Hinduja Group, has $130 million of cash in books to mount the takeover bid. “If a proper and transparent bidding process is followed, we are definitely interested in Satyam.
We are looking at expanding our current operations to outsourcing and infotech related services. Satyam provides us with that opportunity,” the official, who is a member of HGSL board, told ET on condition of anonymity.
“We see a strategic fit with our existing business. We already have funds in our books. Besides, our promoters (the Hindujas) have also promised to contribute additional funds, if we make a bid. We are already in conversation with our bankers to raise additional funds if required,” he added. K Thiagarajan, COO of Hinduja TMT, was associated with Satyam as director and senior VP.
However, industry sources are not certain about the Hinduja Group’s chance of winning Satyam, which is expected to be sold out in two months. An industry expert said that the group is not an aggressive bidder, if its past record is anything to go by.
It had made an attempt to purchase Hutchison’s stake in Hutchison Essar but was outbid by Vodafone two-year-ago. Larsen and Toubro, which holds a 12% stake in Satyam, is considered to be the front-runner for the company. It is also lobbying hard with its institutional shareholders and the government to win their support on this transaction. iGATE, Tech Mahindra and Essar Group have already evinced interest in buying parts of Satyam.
But others like Tech Mahindra are waiting for a clear picture on the liabilities. Says Tech Mahindra’s president (international operations) CP Gurnani: “We are uninterested in Satyam until we get the re-stated balance sheet and the quantification of the legal liability.”
The other potential suitor iGATE had earlier stated that they were looking at buying Satyam in parts. However, given the fact that the Satyam new management categorically stated that Satyam would not be sold in parts, Phaneesh Murthy, CEO, iGATE told ET: “At this time, we are in a wait and watch mode.
We are assuming that since the company is for sale, they will have the new financial statements soon. Our next step and decision will be based on those statements.”
A Essar official said the company is interested only in the BPO arm of Satyam
31 Jan 2009, ET Bureau
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