Oracle to up i-Flex stake to 55 per cent for $125 million
14 Aug 2006
Global software major Oracle would increase its stake in software products company i-Flex Solutions to over 55 per cent through the preferential investment route. i-Flex would issue 44.47 lakh shares to Oracle Global Mauritius at a price of Rs1,307.5 per share. The fund flow of around $125 million from Oracle would help i-Flex to finance the acquisition of US-based software products company Mantas Inc. (See: i-Flex to acquire US company Mantas for $122.6 million) The acquisition is being made for $122.6 million in an all-cash deal.
Oracle Global Mauritius, a subsidiary of Oracle Corp, had last year acquired a 42.5-per cent stake in i-Flex from Citigroup for nearly $600 million. The stake increased to 47.74 per cent as of 31 March, 2006, subsequent to an open offer.
i-Flex became an Oracle subsidiary after the latter increased its stake to over 50 per cent in April 2006. Oracle's stake was at 52.5 per cent as of 30 June, 2006, and would rise to 55.1 per cent following the preferential issue to Oracle.
The stock closed at Rs1,379.9 (up 4.39 per cent) on the NSE today.
