iGate's open offer for Patni to start on 8 April
30 Mar 2011
US-listed software firm iGate's open offer to pick up a 20.6 per cent stake in Patni Computer Systems will start on 8 April and close on 27 April, according to a company statement to the stock exchange.
The open offer was earlier scheduled for 4 March but was delayed pending approval from India's market regulator. The SEBI clearance was delayed because certain clarifications were required from Kotak Mahindra Capital Co, the lead merchant banker for the offer.
Backed by private-equity firm Apax Partners, iGate acquired a majority stake in Patni for $921 million in January, which marked one of the biggest deals in India's technology sector.
With the open offer iGate from public shareholders, the total deal size stands at $1.22 billion (Rs 5,400 crore).
The aggregate purchase price for the shares on open offer assuming full tender is estimated at $301 million.
In all deals involving sale of over 15 per cent stake in a listed company, it becomes mandatory for the acquirer to make an open offer for purchase of an additional 20 per cent stake from public shareholders of the target firm.
