The Andhra Pradesh High Court, on Tuesday, approved the merger of Mahindra Satyam (MSat) with Tech Mahindra while dismissing the petitions of some shareholders seeking to stall the proposal in its current form so as to safeguard their financial interest.
The court, however, said that the investigations into the alleged fraud committed by Satyam Computer’s former Chairman B. Ramalinga Raju and others would continue.
Following the financial fraud by Mr. Raju, Satyam was taken over by the Mahindras, who now plan to merge MSat with Tech Mahindra — a move opposed by some stakeholders.
“CP 123 (the merger petition) is allowed. Investigations will continue until they are disposed of,” Justice N. R. L. Nageswara Rao said while dismissing other petitions seeking to stall the merger.
The merger, when completed, will lead to creation of the country’s fifth largest software services firm.
MSat CEO C. P. Gurnani said it would take another 2-4 weeks to get technical clearances and form the single entity.
“There are some formalities with the registrar of companies in different States where we are registered. We expect it will take 2 to 4 weeks to compete all the issues,” Mr. Gurnani told PTI.