Satyam to seek regulatory aproval for stake sale plan early next week
HYDERABAD, India, Feb. 21, 2009: Satyam Computer Services Limited (NYSE: SAY), a global Consulting and Information Technology services provider, today confirmed that it is back to its winning ways, riding on the relentless efforts of the newly constituted Board to restore stakeholder confidence and ensure business continuity.
Mr. Parekh said that “The Board today approved the process to be followed for inviting a Strategic Investor and decided to seek regulatory approvals early next week. Upon receiving these clearances, the Board would announce the process to be observed”.
Taking note of this, Mr. Kiran Karnik, Chairman of the Board commented “The Board is satisfied with the progress of the company’s stabilization program and appreciated the sustained efforts of Satyamites that has helped the company’s revival on a fast track mode.”
Added Mr. AS Murty, Chief Executive Officer, “The indomitable spirit of Satyamites has helped us to win new Purchase orders and work extensions totaling to over USD 250 Mn. since 7th Jan 2009. The recent successes include a single order of USD 50 Million, and multiple orders from across industry verticals, technologies and geographies, reflecting an all round positive trend. More than half of this value comes from new POs, which reinforces the confidence that customers have been sharing with us in our discussions”
The Board had recommended to the Ministry of Corporate Affairs for the removal of Price Waterhouse (PW) as the statutory auditors of the company and notified PW. PW has tendered its resignation to act as Statutory Auditors of the company. The company is now intending to appoint new statutory auditors.
“The Board has authorized its CEO, Mr. AS Murty to finalize and implement a retention plan for its key associates (in consultation with Boston Consulting Group and Special Advisors) and endorsed actions now underway to fine tune the expenditure and profit optimization plan” said Mr. Achuthan, Board Member.
Commenting on the use of funds, Mr. Manoharan, Director, stated, “We are using the bank funding in a controlled and phased manner to meet immediate and near-term operating requirements, including payments to vendors. The good news is that we are receiving unsolicited offers from banks for funding.”
Today’s meeting was the seventh since its reconstitution on 10th Jan 2009. Mr. Homi Khusrokhan and Mr Partho Datta, Special Advisors to the Board, Legal advisors and senior BCG representatives were also present for the meeting.
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