Tech Mahindra postpones merger with Mahindra Satyam by six months

Tech Mahindra postpones merger with Mahindra Satyam by six monthsThe proposed merger of Mahindra Satyam with Tech Mahindra has been delayed by six more months.

In a filing with the Bombay Stock Exchange (BSE), the company revealed that its board of directors postponed the merger plan up to September 30, 2013.

Revealing the decision, the company said, "The board has extended scheme of amalgamation and arrangement of Venturbay Consultants Pvt Ltd and Satyam Computer Services Ltd and C&S Systems Technologies Pvt Ltd and Mahindra Logisoft Business Solutions Ltd and Canvas MTechnologies Ltd with Tech Mahindra Ltd."

The Satyam Computers was acquired by Tech Mahindra in April 2009. The scam-tainted Satyam Computers was then re-branded as Mahindra Satyam, and the acquirer announced its plan to merger the firm with itself.

For the amalgamation scheme, Tech Mahindra has already secured the mandate of the boards as well as shareholders of the both of the two companies. But, IL&FS and the minority shareholders challenged the amalgamation plan, and the yet-to-be-resolved litigations forced the company to postpone the proposed merger.

Stock in Tech Mahindra yesterday slipped 0.19 per cent to Rs 1,045.80 a share from their previous close at the Bombay Stock exchange.