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MSat-Tech Mahindra merger details likely this week

Last Updated: Monday, June 24, 2013 - 20:49

New Delhi: Days after the Andhra Pradesh High Court approved the merger of Mahindra Satyam with parent Tech Mahindra, the two companies are likely to this week unveil blueprint of the merged entity.

The merger when completed will create the country's fifth largest software services firm, sources in know of the development said.

The two firms are likely to announce restructured organisation set-up and key management people. Anand Mahindra is likely to be named chairman of the merged entity.

Besides Chairman, vice chairman, chief executive and head of finance are likely to be named in the announcement which was to come this evening but was called off at the 12th hour.

Mahindras had in 2009 taken over Satyam Computers after the multi-billion dollar scam by its founding chairman B Ramalinga Raju. The group is now working at merging Mahindra Satyam with Tech Mahindra - a move opposed by some stakeholders.

The High Court, however, set aside the objections.

Sources said the branding of merged entity as well as the structure of the organisation is likely to be unveiled at the corporate announcement this week.

The board was scheduled to meet today but due to some reasons, the meeting has been postponed.
The board is likely to meet shortly, sources said.

Sources said both the companies have finalised key aspects of the merger and Anand Mahindra is likely to be named chairman of the merged entity.

Last year, the company announced the merger of two companies and have secured the mandate of both the boards and shareholders, barring the minority ones, who have challenged the swap-ratio in the Andhra High Court.

PTI

First Published: Monday, June 24, 2013 - 20:49
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