Satyam, the name that was once synonymous with the State’s IT sector, will now be consigned to the dustbin of history as the Andhra Pradesh High Court on Tuesday cleared its long-pending merger with Tech Mahindra (Tech M). In other words, it means that Satyam will soon be no longer on the bourses.
The approval will allow promoters to formally complete the integration process and very soon, in two to four weeks, Satyam will cease to exist. The company, during its upcoming AGM on July 31, is likely to deliberate on issues including re-branding the merged entity. Tech M and Satyam, currently have about $2.5 billion in revenues and employ over 80,000.
For shareholders, the swap ratio stands at 17:2 as approved by both company boards. So 17 Satyam shares will be swapped with 2 Tech M shares of `10 each. It was this swap ratio, which minority shareholders, who control 15-20 per cent stake in Satyam, were dissatisfied with and moved the HC. Subsequently, the HC had appointed an independent auditor -- Brahmayya and Co — to look into the issue. Besides, 37 companies promoted by former chairman Raju and IL&FS, too dragged Satyam to court alleging Rs 1,230 crore unsecured advances issued by them.
Justice NRL Nageswara Rao, in his common order on the petitions filed by Satyam and others, said the scheme of amalgamation and arrangement was bona fide and allowed it for approval with effect from April 1, 2011 by imposing certain conditions. He made it clear that attachments ordered by ED and other agencies shall hold.
