iGate accepts minority shareholders' Rs520 per share offer to delist Patni
09 Apr 2012
Nasdaq-listed iGate Corp today said that it has accepted minority shareholders' offer of Rs520 per share to delist its Indian subsidiary Patni Computer Systems, which it had acquired in early 2011 for $1.22 billion.
Based in Fremont, California, with its Indian headquarters in Bangalore, iGate wants to buy the 19.6 per cent it does not own in Patni.
Patni's minority public shareholders were invited to submit bids via an offer that opened on 28 March and closed on 30 March.
Post acquisition, iGate had said that it would delist Patni from the Indian and New York Stock Exchanges by mid-2012. (See: iGate to de-list Patni shares from Indian bourses)
iGate holds 80.4-per cent of Patni's normal shares and ADRs through its subsidiaries - Pan-Asia iGate Solutions and iGate Global Solutions.
"We believe that the price of Rs520 provides both a reasonable premium to the Patni shareholders and is still accretive to iGATE shareholders while being strategic to the company", iGate CEO Phaneesh Murthy said.