MSat-Tech Mahindra swap ratio for merger opposed in AP HC

A group of minority shareholders of Mahindra Satyam (formerly Satyam Computer Services) has filed a petition in the Andhra Pradesh High Court opposing the proposed share-swap ratio among other things in the merger with Tech Mahindra.

The petitioners have requested the court to revise the swap-ratio of 2:17, giving shareholders two Tech Mahindra shares for every 17 owned in Mahindra Satyam. "It has been  submitted that the applicants are not opposed to the merger. But are opposed to the current share-swap ratio, ill-timing of the merger based on previous year's financial statements, grossly incorrect methodology used for valuation and the transferee favouring the scheme," the petitioners said.

The matter has been posted for hearing on December 3. Mahindra Satyam's merger with Tech Mahindra has been cleared by the Bombay Stock Exchange and the National Stock Exchange. Competition watchdog CCI had also approved the proposed merger that when completed will created a USD 2.4-billion entity.

Mahindra Satyam chairman Vineet Nayyar had earlier said that the process of merger was in the final stages and was awaiting approvals from the Andhra Pradesh High Court and the Bombay High Court.