Tech Mahindra has hinted that its proposed merger with Mahindra Satyam will be completed within this year. The company pointed out that a lot of work has been done on the merger and two companies are already working together on several fronts.
Tech Mahindra Executive Vice-chairman Vineet Nayyar said, "The Andhra Pradesh High Court today adjourned the hearing on the petitions challenging the merger of Mahindra Satyam with Tech Mahindra by three weeks. However, we do not see any challenges for the merger."
The merger will result in the creation of the fifth largest software services exporter in terms of market value. The revenues of the combined entity will be about $2.4 billion and it will have more than 350 clients in different locations and in different locations, the company had claimed when it announced that the board has approved the merger.
The shareholders of Mahindra Satyam will receive one share of Tech Mahindra for 8.5 shares of Satyam held, it announced. According to experts, a swap ratio of 2:17 for the proposed merger is mostly as per the expectations of the market.
Tech Mahindra had acquired Satyam Computers in April 2009 after it was tainted by a major scam and had renamed the company Mahindra Satyam.