scorecardresearch
Clear all
Search

COMPANIES

No Data Found

NEWS

No Data Found
Sign in Subscribe
iGate makes open offer for Patni

iGate makes open offer for Patni

The open offer for Patni will start on March 4 and close on March 23 and the deal size will go up to $1.22 billion after acquisition of 20.6 per cent from public shareholders.

Patni Computer Systems on Monday said that the US-based IT firm iGate has made an open offer for the 20.6 per cent stake in the company, in accordance with the requirements of the market regulator Securities and Exchange Board of India (SEBI).

On Monday, after several rounds of negotiations, the US-based iGate-led consortium clinched a deal to buy nearly 63 per cent stake in India's sixth largest IT firm Patni Computer for about $921 million (Rs 4,188 crore).

"The acquirers - iGATE Solutions and iGATE Global Solutions Ltd and iGATE Corporation - hereinafter referred to as person acting in concert (PAC) propose to acquire 2.70 crore shares of the Target Company representing 20.6 per cent of the Current Equity Capital of the Target Company, at a price of Rs 503.50 per share," Patni said in a filing to the Bombay Stock Exchange (BSE).

iGate's open offer for Patni will start on March 4 and close on March 23, the filing added.

The deal size will go up to about $1.22 billion (more than Rs 5,400 crore), after acquisition of 20.6 per cent from public shareholders at the same price of Rs 503.50 per share through the mandatory open offer.

The deal is expected to be completed in the first half of 2011, after obtaining all the regulatory approvals. iGATE expects the transaction to be accretive by 2012 on a cash earnings per share basis.

Shares of Patni Computer Systems dropped by 3.9 per cent to an early-low of Rs 445.75 on the Bombay Stock Exchange.


Related Articles

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Jan 11, 2011, 11:39 AM IST
×
Advertisement