Tech Mahindra slips on extension of merger plans with Mahindra Satyam

NEW DELHI: Tech Mahindra Ltd slipped nearly 3 per cent in trade on Tuesday, after the company extended the proposed merger of Mahindra Satyam with itself for six months.

The company in a BSE filing said that its "board of directors extended the validity of the (amalgamation) scheme by a further period of six months i.e. up to September 30, 2013."

At 2:12 PM, shares in Tech Mahindra were trading at Rs 1034.20, down 1.11% on the Bombay Stock Exchange. They had hit an intra-day high of Rs 1041.70 and a low of Rs 1015.90.

The board has extended "scheme of amalgamation and arrangement of Venturbay Consultants Pvt Ltd and Satyam Computer Services Ltd and C&S Systems Technologies Pvt Ltd and Mahindra Logisoft Business Solutions Ltd and CanvasM Technologies Ltd with Tech Mahindra Ltd and their respective shareholders and creditors", it said.

Tech Mahindra took over reins of the scam-tainted Satyam Computers in April 2009 and rebranded it as Mahindra Satyam.

Last year, it had 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 Pradesh High Court.

In February this year, Tech Mahindra had expressed the hope that the proposed merger of Mahindra Satyam with itself will be completed shortly.