Sebi clears iGate's 20 pc open offer of Patni

Sebi clears iGate's 20 pc open offer of Patni

US-based iGate had announced in January a deal to acquire 63 per cent stake in Indian IT company Patni for a total consideration of USD 921 million (Rs 4,188 crore).

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 USD 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 USD 301 million.

The open offer, which was earlier scheduled to begin on March 4, got delayed as it was awaiting a clearance from Sebi.

The regulator today said that it issued its final observations on the offer on March 25 -- a move that would allow iGate to announce a revised schedule for the offer.
The Sebi clearance was delayed as regulator had sought certain clarifications from Kotak Mahindra Capital Co, the lead merchant banker for the offer.

The original schedule for the open offer was fixed for March 4-23.
In any deal involving sale of over 15 per cent stake in a listed company, the acquirer is mandatorily required to make an open offer for purchase of an additional 20 per cent stake from public shareholders of the target firm.

In 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.

Under the deal, iGate, in a consortium with private equity firm Apax Partners, will 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.