Tech Mahindra announced that they will buyout of IT company Satyam Computer on Wednesday. Tech Mahindra bought over 42% stake in Hyderabad based Satyam in April 2009. The Satyam Group was collapsed in 2009 when government found accounting scandal. Raju, once a star of India’s software boom, is now on bail awaiting trial for conspiracy, cheating and forgery. The takeover of the remaining Satyam Group stake will involve an exchange of stocks with shareholders receiving 1 Tech Mahindra share for every 8.5 Satyam share.
Merger Ratio: Satyam 8.5:1 Tech Mahindra
“The aim is to consolidate the information technology and related businesses and form a single entity, providing services to the sector,” a joint statement from the companies said.