Mahindra Satyam, Tech Mahindra to decide on merger tomorrow
20 Mar 2012
The board of directors of Mahindra Satyam (formerly Satyam Computer Services Ltd) and Mahindra group's IT arm Tech Mahindra will meet tomorrow (21 March) to consider the merger of the former with Tech Mahindra Limited.
The board of Tech Mahindra will also consider the amalgamation of Venturbay Consultants Private Limited, C&S System Technologies Private Limited, CanvasM Technologies Limited and Mahindra Logisoft Business Solutions Limited (being wholly owned subsidiaries of the Company or Tech Mahindra Limited) with Tech Mahindra Limited.
The mergers and amalgamations will help Tech Mahindra consolidate its position in the information technology IT enabled services by forming a single entity providing all related services.
It is not yet known whether it would be an acquisition, a merger or an amalgamation, but it is sure that the final entity would be Tech Mahindra.
The combined entity will also be the fifth largest Indian IT company in terms of market cap.
British Telecom and other promoters of Tech Mahindra they hold about 23.20 per cent stake in Tech Mahindra. British Telecom will alone hold about 11.44 per cent stake in the combined entity.