SEBI clears iGate's $301 million open offer for Patni
28 Mar 2011
The Securities and Exchange Board of India (SEBI) is reported to have approved an offer by US-based IT firm iGate to acquire an additional 20 per cent in Indian IT firm Patni Computers from its public shareholders.
IGate, which had, in January 2011, announced a $921 million (Rs4,188 crore) deal to acquire 63 per cent stake in Patni Computers, has to mandatorily make an open offer to buy an additional 20 per cent in the target company (Patni) from its public shareholders.
iGate has offered to purchase 20 per cent stake from the public at Rs503.50 per share - the same price it paid to Patni's promoters.
The open offer for 20 per cent stake in Patni Computers, India's sixth-largest IT firm, is expected to cost iGate $301 million (about Rs1,349 crore).
iGate, in consortium with private equity firm Apax Partners had agreed to buy the entire 45.6 per cent stake of Patni brothers - Narendra Patni, Ashok Patni and Gajendra Patni - along with General Atlantic's 17.4 per cent holding.
Combined with the open offer, iGate's deal to acquire a majority stake in Patni Computers will take the total size of the deal to $1.22 billion (Rs5,400 crore).
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