Hyderabad: The boards of Mahindra Satyam and Tech Mahindra Ltd today approved the merger of the companies, the reports said. The joint entity, whose name will be determined later, will have its headquarters in Mumbai.
According to separate statements issued by the two companies on Wednesday, it has been suggested that Satyam Computer (Mahindra Satyam) shareholders will get two wholly paid-up equity shares of Rs 10 each of Tech Mahindra for every 17 fully paid-up shares of Rs 2 each held.
On a pro forma basis, the Mahindra Group will own 26.3 per cent in the joint entity and British Telecom will own 12.8 per cent. As well, 10.4 per cent will be held as treasury stock, 34.4 per cent to be held by public shareholders of Mahindra Satyam and the balance 16.1 per cent will be supposed by the public shareholders of Tech Mahindra.
Tech Mahindra will issue 10.34 crore fresh shares, thus increasing its outstanding shares to 23.08 crore and its equity capital to Rs 230.8 crore.