iGate open offer for Patni to start April 8

US-listed iGate's open offer for buying a little over 20 per cent stake in Indian IT company Patni Computer Systems will begin on April 8 and close on April 27.

Earlier in January, iGate, in a consortium with private equity firm Apax Partners, had announced a deal 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 for $921 million (Rs 4,188 crore).

In a filing to the Bombay Stock Exchange, Patni said the date for commencement of the open offer has been revised to April 8 from the earlier March 4.

The date was put off as approval from market regulator Sebi was pending.

The Sebi clearance was delayed as the regulator had sought certain clarifications from Kotak Mahindra Capital Co, the lead merchant banker for the offer.

Besides, iGate had also announced an open offer for purchase of up to 20 per cent stake from public shareholders, taking the total deal size to $1.22 billion (Rs 5,400 crore).

The aggregate price for the shares to be purchased in the open offer, assuming full tender, is estimated at $301 million.

In any deal involving sale of over 15 per cent stake in a listed company, it is mandatory for the acquirer required to make an open offer for purchase of an additional 20 per cent stake from public shareholders of the target firm.

In the Patni deal, iGate has offered to purchase 20 per cent stake from public at a price of Rs 503.50 a share - the same price paid to the promoters of India's sixth largest company.