New Delhi: Mahindra Satyam today said its shareholders have approved the merger of the firm with its parent company Tech Mahindra.
“The shareholders of both Tech Mahindra and Mahindra Satyam have unanimously approved the scheme of amalgamation and merger of Satyam Computer Services Ltd, Venturbay Consultants, C&S System Technologies, CanvasM Technologies and Mahindra Logisoft Business Solutions with Tech Mahindra,” Mahindra Satyam said in a statement.
The decision was taken at the respective extraordinary general meeting (EGM) of the two companies held earlier earlier this week to consider the merger proposal. The EGM was convened as per the orders of Andhra Pradesh High Court.
Earlier, the two companies’ boards had proposed a swap ratio of 2:17. This means for every 17 shares held in Mahindra Satyam, shareholders will get two shares in Tech Mahindra.
Both Bombay Stock Exchange and National Stock Exchange had already given their approvals for the merger. Competition watchdog CCI too had given a go-ahead to the the proposed amalgamation.
The merged entity is expected to be the country’s fifth largest software firm with an annual revenue of about USD 2.4 billion.
With approval from shareholders, both the companies would move forward in the process of merger and take appropriate steps after due diligence as advised by the appointed lawyers and consultants, the statement said.
The combined entity, would benefit from operational synergies, economies of scale, sourcing benefits, and standardisation of processes to create a top level information and communications technology service provider, it added.
In March this year, the boards of Tech Mahindra and Satyam Computer in their respective meetings approved a proposal to merge Mahindra Satyam with Tech Mahindra.
Tech Mahindra took over the scam-hit Satyam in April, 2009 and rebranded it as Mahindra Satyam after Founder and Chairman of Satyam, B Ramlinga Raju, had admitted to multi-crore accounting fraud at the firm in January 2009.