Nasdaq-listed iGate Corp on Wednesday announced its board's decision to delist its shares from Indian bourses and American Depository Receipts (ADRs) from the New York Stock Exchange following the company's acquisition of Patni Computer Systems for $1.22 billion early this year.
iGate holds 80.4-per cent of Patni's normal shares and ADRs through its subsidiaries - Pan-Asia iGate Solutions and iGate Global Solutions. Based in Fremont, California, with its Indian headquarters in Bangalore, the information technology solutions and services firm will raise $215 million (Rs1,090 crore) via debt to fund the purchase.
The de-listing, to be done through a reverse book building process, is expected to be completed by mid-2012. iGate has indicated a floor price of Rs356.74 per share. The delisting is subject to the approval of Patni shareholders and regulatory approvals.
iGate chief executive officer Phaneesh Murthy said, ''We believe that given the low liquidity of Patni's equity shares, the delisting offer would provide the public investors of Patni with the ability to exit fully from the shares of Patni.''
Murthy added, ''If, however, after the reverse book building process, we conclude the ultimate discovered price to purchase the Patni shares outweighs the benefits, we will examine our alternatives.''
The company also said the ADS representing the ordinary shares of Patni could be delisted in accordance with applicable rules and regulations. iGate has the right not to purchase the offered shares if it does not find acceptable the final price discovered through the above process.