Tech Mahindra delays Mahindra Satyam merger by 6 months

Tech Mahindra has extended the validity of the proposed merger of Mahindra Satyam with itself for a further period of six months, ie, up to 30 September 2013.

The company also postponed the merger of some other companies, including group companies, for a six-month period, according to a BSE filing.

"The board has extended scheme of amalgamation and arrangement of Venturbay Consultants Pvt Ltd, Satyam Computer Services Ltd, C&S Systems Technologies Pvt Ltd, Mahindra Logisoft Business Solutions Ltd and CanvasM Technologies Ltd with Tech Mahindra Ltd and their respective shareholders and creditors", it said.

Tech Mahindra, which bought scam-tainted Satyam Computer in April 2009, had since renamed it as Mahindra Satyam and had, last month, said it expected to complete the proposed merger of Mahindra Satyam with itself shortly.

The company had announced the merger plans last year after boards both the companies approved the merger.  Shareholders, barring minority shareholders, also had approved the merger.

The minority shareholders had challenged the merger the swap-ratio in the Andhra Pradesh High Court.

Again, in February this year, Tech Mahindra had expressed hope of early completion of the proposed merger of Mahindra Satyam with itself.

The Tech Mahindra scrip lost 0.48 per cent of its value after slipping nearly 3 per cent in early trade on the Bombay Stock Exchange (BSE) today, after the company extended the proposed merger of Mahindra Satyam for six months.