Mahindra-Satyam shareholders oppose Tech Mahindra swap ratio
28 Nov 2012
A group of Mahindra Satyam (formerly Satyam Computer Services) minority shareholders has filed a petition in the Andhra Pradesh High Court opposing, the proposed share-swap ratio and other for merger with Tech Mahindra.
The petitioners have moved the court for a revision of the swap-ratio of 2:17, giving shareholders two Tech Mahindra shares for every 17 owned in Mahindra Satyam.
According to the petitioners they were not opposed to the merger but to the current share swap ratio, the ill timed merger based on previous year's financial statements, grossly incorrect valuation methodology and the transferee favouring the scheme.
The matter is to come up for hearing on 3 December.
The Bombay Stock Exchange and the National Stock Exchange have cleared the merger of Mahindra Satyam's merger with Tech Mahindra.
The proposed merger has also been approved by competition watchdog CCI. The merger would create a $2.4-billion entity on completion.