The Bombay High Court has approved the merger of Satyam Computer Services Ltd with group company Tech Mahindra Ltd, the latter said in a notice to Bombay Stock Exchange.
In August, Tech Mahindra Vice-Chairman, Managing Director and Chief Executive Officer Vineet Nayyar had said the merger was at its “penultimate” stage and was awaiting approval from Andhra Pradesh and Mumbai high courts. As on 30 June 2012, Venturebay Consultants, a wholly-owned subsidiary of Tech Mahindra, currently holds 42.64% stake in Mahindra Satyam.
In March, the board of directors of Tech Mahindra and Satyam Computer had approved the merger of the two companies, with shareholders of the latter getting two Tech Mahindra shares for every 17 held.
Mahindra Group had acquired Satyam Computer in 2009, when its founder Ramalinga Raju stepped down after admitting to fudging company’s accounts for several years. The Bombay High Court also approved merger of other arms–C&S System Technologies Pvt Ltd, Mahindra Logisoft Business Solutions Ltd, and CanvasM Technologies Ltd with Tech Mahindra.
Due to courts approval, Tech Mahindra shares ended 5.50% higher at 1,025.55 rupees and Satyam Computer shares ended 3.12% up at 114.20 rupees on the National Stock Exchange.
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