Unhappy over the swap ratio for the merger between consulting and IT services company Mahindra Satyam (erstwhile Satyam Computer Services Limited) and its parent Tech Mahindra, some shareholders of Satyam on Tuesday filed a petition in the Andhra Pradesh High Court contending that “the swap ratio was not in tune with the legal process.”
The boards of both the companies, had in March 2012, approved the stock swap ratio for the merger as 2:17 (2 shares of Tech Mahindra for 17 shares of Mahindra Satyam).
Following the approval, some retail investors of Satyam had raised apprehensions in the high court-convened annual general meeting of the company in Hyderabad in June 2012, saying the Tech Mahindra management should have waited till Mahindra Satyam improved its profitability and its share value, at least till 2014.
The shareholders, in their petition today, also impleaded one of Satyam founder Ramalinga Raju’s companies in the case saying they had receivables to the extent of Rs 1,000 crore and that the merger process should not happen unless the amount was settled. Hearing on the petition has been posted to next week.