The Hindu Business Line : Court order can quicken merger with vMoksha, says H&M — `Pawan Kumar will help complete the deal'

THE interim order that Helios & Matheson (H&M) obtained on Monday from the Chennai High Court will help quicken its merger with vMoksha Technologies, the company claims. Helios had acquired vMoksha in April 2005 for $19 million.

The court on Monday passed an order of interim injunction restraining Mr Pawan Kumar, one of the founders of vMoksha Technologies, from carrying on any business or taking up any new employment or continuing in any other employment. It also restrained the other co-founder Mr Rajeev Sawhney, current Chairman of vMoksha, his associates and nominees from functioning as the Chairman and/or Chief Executive Officer or from altering the managerial structure and functioning of vMoksha, Helios & Matheson informed the stock exchanges on Monday.

Earlier this month, Mr Pawan Kumar, one of the founders of vMoksha Technologies, had joined Scandent Solutions as its President, IT Division, in preparation for its merger with Cambridge Integrated Services.

Mr V. Ramachandiran, Chairman of H&M, told Business Line on Tuesday, "vMoksha Mauritius owned vMoksha's arms in India, Singapore and the US, all of which we have acquired. A Director of vMoksha, Mr Rajeev Sawhney, sent a letter to the escrow agent on January 31 this year, indicating that he was not willing to cooperate in completing the transaction. "It appears that the families of Mr Pawan Kumar and Mr Sawhney are unable to reach an understanding, which will culminate in releasing merger documents to H&M. Mr Sawhney also sent a letter to us on February 17, indicating that he is not agreeable to the arbitration."

The Court order helps restore status quo, Mr Ramachandiran said. Asked if bringing back Mr Pawan Kumar to vMoksha would actually help the co-founders of vMoksha resolve differences, he said, "The next step is where our arbitrator would discuss with the two parties. Mr Kumar, with whom we have a good relationship, is the seller, director/promoter and authorised signatory for the deal. Mr Sawhney is only a confirming party, according to the agreement."

Mr Ramachandiran also explained that the order would help Mr Pawan Kumar focus on completing the transaction. He said that the arbitration proceedings would begin in about two or three weeks.

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