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Mahindra Satyam shareholders approve merger with Tech Mahindra

The two companies' boards had proposed a swap ratio of 2:17

Press Trust of India  |  New Delhi 

today said its shareholders have approved the of the firm with its parent company

"The shareholders of both and have unanimously approved the scheme of amalgamation and of Satyam Computer Services Ltd, Venturbay Consultants, C&S System Technologies, CanvasM Technologies and Mahindra Logisoft Business Solutions with Tech Mahindra," said in a statement.

 
The decision was taken at the respective extraordinary general meeting (EGM) of the two held earlier earlier this week to consider the proposal. The EGM was convened as per the orders of Andhra Pradesh High Court.

Earlier, the two companies' boards had proposed a swap ratio of 2:17. This means for every 17 shares held in Mahindra Satyam, shareholders will get two shares in

Both Bombay Stock Exchange and National Stock Exchange had already given their approvals for the Competition watchdog CCI too had given a go-ahead to the the proposed amalgamation.

The merged entity is expected to be the country's fifth largest software firm with an annual revenue of about USD 2.4 billion.

With approval from shareholders, both the would move forward in the process of and take appropriate steps after due diligence as advised by the appointed lawyers and consultants, the statement said.

The combined entity, would benefit from operational synergies, economies of scale, sourcing benefits, and standardisation of processes to create a top level information and communications technology service provider, it added.

In March this year, the boards of and Satyam Computer in their respective meetings approved a proposal to merge with

took over the scam-hit Satyam in April, 2009 and rebranded it as after Founder and Chairman of Satyam, B Ramlinga Raju, had admitted to multi- crore accounting fraud at the firm in January 2009.

First Published: Sun, June 10 2012. 15:59 IST
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