MUMBAI: IT firm Mahindra Satyam said on Friday it would delist from the New York Stock Exchange in mid-October due to non-compliance, adding that it would likely miss its deadline to report financial results for fiscal year 2009.
Satyam shocked investors in January 2009 when the firm's former chairman and founder Ramalinga Raju said its profits had been overstated and assets falsified in a fraud allegedly worth over $1.5 billion.
The company on Tuesday said its board will review its audited financial results for fiscal years 2009 and 2010 on Sept. 29, which analysts say will take it closer to a merger with parent Tech Mahindra. Tech Mahindra, which bought Satyam in April 2009 and is operating it as an independent company, has said it can only merge the firm into the parent after the restated results for fiscal years 2009 and 2010 are announced.
Satyam's auditor PricewaterhouseCoopers had said all Satyam audit reports from 2000 through 2008 should no longer be relied upon, after the revelation of the fraud. Analysts do not expect the company to restate numbers earlier than the 2008/09 fiscal year (April-March). Satyam, which once ranked as India's No. 4 outsourcing firm, has not reported results beyond the September quarter in 2008.
Satyam faces class action lawsuits from shareholders in the United States, which were filed after a sharp plunge in its New York-listed shares following the revelation of the fraud. The company has also received legal notices claiming a refund of 12.3 billion rupees ($265 million) by 37 companies, which Mahindra Satyam has said are "legally untenable".
Last December, Satyam agreed to pay $70 million to Britain's Upaid Systems Ltd to settle a patent suit and in August won a New York court ruling to withhold taxes on the payment.
No comments:
Post a Comment