Tech Mahindra Subsidiaries Merger
Tech Mahindra Limited has announced the merger of its two wholly-owned step-down subsidiaries in Costa Rica: TM Born Group CR Sociedad de Responsabilidad Limitada and Allyis Technology Solutions Sociedad de Responsabilidad Limitada. Both entities operate under Allyis Inc., USA, which is fully owned by Tech Mahindra Limited.
The boards of directors of both subsidiaries approved the merger on December 1, 2024, with the same date set as the official merger date. The merger is contingent upon regulatory approval in Costa Rica.
Key Details and Implications
Purpose:
- Cost Efficiency and Risk Mitigation: The merger aims to streamline operations and minimize compliance risks.
Financial Structure:
- No cash payments or new shares will be issued, as the companies are wholly-owned subsidiaries.
- Allyis Inc.’s investment in TM Born will be canceled post-merger.
- The merger will not impact the shareholding pattern of Tech Mahindra Limited.
Subsidiary Operations:
- TM Born specializes in creative digital marketing solutions.
- Allyis Technology Solutions provides consulting, managed services, and personnel solutions.
Financials for FY 2023-24:
- TM Born: CRC 303.50 million (approx. USD 0.58 million)
- Allyis Technology Solutions: CRC 4,576 million (approx. USD 8.7 million)
