The management of the Mahindra Satyam is awaiting the AP High Court’s nod for its merger with the Tech Mahindra.
The merger, once effected, will come into effect from April 2011, Mahindra Satyam chairman Vineet Nayyar said. “The merger has reached its penultimate stage as the Maharashtra High Court has already given its nod. The two companies stand amalgamated as soon as the AP High Court gives its judgment,” he said responding to queries at a press conference here on Thursday.
Judicial pronouncement was not based on any issue as 99.5 per cent of the shareholders decided in favour of amalgamation. The AP High Court, according to him, had completed the hearing and the company was expecting an order in the first or second week next month. “We are in the process of getting out of the tunnel. The companies are working as one with the systems aligned,” he said.
He recalled how Mahindra Satyam, the erstwhile Satyam Computer Services Limited, had gone through “fleeting moments” ever since Satyam founder B. Ramalinga Raju admitted to inflated accounts. “From the near death experience, the company has come to a new, vigorous life,” he said. By the end of the financial year 2012-13, Mahindra Satyam had 55 per cent of its business coming from north America and another 22 per cent from the rest of the world while the balance from Europe. There was, however, little ramp down in the Europe operations owing to closure of some large deals. “But this is the right time to invest in Europe,” Mahindra Satyam CEO C.P. Gurnani said.