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Satyam-Tech Mahindra merger postponed

Board of directors has extended validity of the scheme by a further period of six months

BS Reporter Chennai/ Hyderabad
Sitting on the yet-to-be-resolved litigations raised by IL&FS and the minority shareholders, Mahindra Satyam has delayed the proposed merger with Tech Mahindra by six more months.

Pursuant to Clause 28.1 of Scheme of Amalgamation and Arrangement with Tech Mahindra Limited and their respective shareholders and creditors, the board of directors has extended the validity of the scheme by a further period of six months ie, up to September 30, 2013, the company informed the BSE on Monday.

Though the company has got necessary approvals from the Securities and Exchange Board of India (Sebi), Competition Commission of India and stock exchanges, it could not go ahead as the Andhra Pradesh high court is yet to decide on the petitions filed by IL&FS Engineering and Construction Company (formerly Maytas Properties, also promoted by Satyam founder Ramalinga Raju) and the minority shareholders.
 

While the IL&FS and other petitioners wanted Satyam to return Rs 1,230 crore, which they claim to have lent when the company was still under the previous management,  the minority shareholders had questioned the swap ratio of two shares of Tech Mahindra for 17 shares of Mahindra Satyam. The high court had appointed an independent auditor to assist the liquidator to determine the claims of the petitioners.

The Mahindra group had acquired majority stake in Satyam Computers in April 2009 in an auction supervised by a government-appointed committee.

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First Published: Mar 25 2013 | 8:35 PM IST

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