Tech Mahindra's directors join Satyam Board

NEW DELHI: Four nominee directors of Tech Mahindra, including its Chief Executive Vineet Nayyar, on Wednesday joined the board of the embattled IT firm Satyam Computer.

Vineet Nayyar, the Chief Executive Officer (CEO) of Tech Mahindra has been the whole-time director of Satyam Computer Services, effective Thursday.

The other three nominees of Venturbay Consultants Pvt Ltd, a special purpose vehicle (SPV) floated by Tech Mahindra to acquire Satyam, who joined Satyam Board are CP Gurnani, Sanjay Kalra and Ulhas N Yargop.

The directors were to be formally inducted on June 1 this year, but their joining has been advanced to Thursday. With their induction, the Satyam board will have 10 directors including the six government appointed directors.

Satyam plunged into a crisis after its defamed founder B Ramalinga Raju confessed to perpetrating a Rs 7,000 crore fraud. The government superceded its erstwhile board and appointed its own nominees to salvage the firm.

Tech amhindra acquired a 31% stake thougha preferrential allotment and paid Rs. 1,756 crore or Rs 58/share. Pune-based Tech Mahindra, where Mahindra and Mahindra is a promoter with a majority stake and British Telecom has 30 per cent, is a key player in telecom software.

The appointment of the nominee directors comes pursuant to the completion of share purchase agreement between Tech Mahindra and Satyam Computer Services, under which the new owner of the IT firm had completed the acquisition of 31 per cent stake in the company for Rs 1,756 crore.