The Board of Directors of Tech Mahindra and Mahindra Engineering Services, (MES), in their respective meetings, approved a proposal to merge MES with Tech Mahindra. Mahindra Engineering Services is a global engineering consultant and service provider catering to automotive, aerospace, defense & manufacturing industries. It boasts of 1300 employees and revenues of Rs 250.59 crore as of FY13.
This merger, subject to necessary regulatory approvals, will see the creation of one of the prominent players providing engineering services from India with strengths in Aerospace and Automotive verticals. MES will benefit due to the larger global reach and deeper resource pool of Tech Mahindra, while Tech Mahindra will gain access to some of the key automotive clients across the globe.
Meanwhile, all assets and liabilities of MES are to be transferred and vested in Tech Mahindra. The exchange ratio recommended by the valuers and approved by the Board of Directors is 5 shares of Tech Mahindra (face value of Rs 10 each), for every 12 shares of Mahindra Engineering (face value of Rs 10 each). ICICI Securities has provided a fairness opinion on the swap ratio.
Tech Mahindra is a leading provider of solutions and services to the telecommunications industry with a majority stake owned by Mahindra & Mahindra. The company, since 2002 has operations in China with offices in Beijing, Shanghai, Nanjing and Guangzhou.
This merger, subject to necessary regulatory approvals, will see the creation of one of the prominent players providing engineering services from India with strengths in Aerospace and Automotive verticals. MES will benefit due to the larger global reach and deeper resource pool of Tech Mahindra, while Tech Mahindra will gain access to some of the key automotive clients across the globe.
Meanwhile, all assets and liabilities of MES are to be transferred and vested in Tech Mahindra. The exchange ratio recommended by the valuers and approved by the Board of Directors is 5 shares of Tech Mahindra (face value of Rs 10 each), for every 12 shares of Mahindra Engineering (face value of Rs 10 each). ICICI Securities has provided a fairness opinion on the swap ratio.
Tech Mahindra is a leading provider of solutions and services to the telecommunications industry with a majority stake owned by Mahindra & Mahindra. The company, since 2002 has operations in China with offices in Beijing, Shanghai, Nanjing and Guangzhou.
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