MSat, TechM merger proposal to be taken up in June AGMs

Both Bombay Stock Exchange and National Stock Exchange have given their nod for the merger proposal, according to MSat CEO C P Gurnani. "Now both the stock exchanges where we are listed have given their clearance. The third part is in the AGM to take place and the advance notices have been given.

Around June, AGMs would likely to take place," he told reporters. "So as to the best of my knowledge the merger process is exactly on track and it is expected that there would be no major hurdles," he added. Boards of both the IT firms had approved the merger with swap ratio of 2:17, giving shareholders two Tech Mahindra shares for every 17 owned in Mahindra Satyam. Gurnani, however, refused to give a timeframe by when the merger process would be completed.

"No point in putting dates. This is a serious process which requires shareholders approval and high courts also should approve," he said. Tech Mahindra took over the reins of the scam-hit Satyam Computer Services in April, 2009, and rebranded it as Mahindra Satyam. Founder and the then chairman of Satyam Computer B Ramlinga Raju in January 2009 had admitted to multi-crore accounting fraud at the firm.

Satyam shares closed at Rs 75.70 on the BSE today, down 0.72% from its previous close.