Mahindra Satyam may consider re-listing on NYSE post merger
10 Aug 2011
Mahindra Satyam may consider relisting of its American Depository Shares (ADSs) on the New York Stock Exchange (NYSE) after merger with Tech Mahindra, chairman Vineet Nayyar told the company's annual general meeting today.
He added that the withdrawal of the ADS from NYSE listing had been disheartening for the company. But to stay on, he said, the company has to make sure that its accounts are acceptable by the Securities and Exchange Commission. (See: Mahindra Satyam to withdraw its American Depository Shares)
Shareholders of Mahindra Satyam, however, opposed the management's plan to merge the company with Tech Mahindra.
Raising concerns about likely lower valuation for the company in the backdrop of financial mess, several investors have asked the management to defer the plan at least till the company's fortunes improve.
Chairman Vineet Nayyar assured the shareholders that the management would ensure fair and equitable deal for Satyam investors as it merges the two firms.
"Merger is on the cards. It will be fair and equitable," Nayyar said.
Nayyar also said that the developments in the US would not aversely affect business sentiment in the US and hence would not impact Mahindra Satyam's operations there.
Mahindra Satyam shares were up 15 per cent in early trade on the bourses today after the company posted a Rs225.2 crore profit for the June quarter.