The Telegraph
Tuesday , April 10 , 2012
Since 1st March, 1999
CIMA Gallary

Patni delisting in last lap

Mumbai, April 9: Nasdaq-listed iGate Corporation will offer Rs 520 per share to the minority shareholders of Patni Computer Systems to get the Indian arm delisted from the stock exchanges.

The price, discovered through the reverse book-building process, is more than Rs 503 apiece that iGate had paid to acquire a controlling stake in Patni last year.

iGate had indicated that it would not spend more than $250 million to buy out the stake of the minority shareholders and would not go for delisting if it had to pay more than Rs 450 per share.

Though iGate had raised $215 million for the buyout, it will be spending around $272 million to delist Patni.

Chief executive Phaneesh Murthy said in Bangalore that the company had been able to tie up funds amounting to $265 million from lenders against $215 million earlier because of its good performance in the quarter ended December 31.

“The better performance in the fourth quarter of 2011 and the benefits of a streamlined corporate structure enabled us to arrange for some extra funding in the last week and raise the debt amount of $265 million,” he said.

US-based iGate, along with private equity player Apax Partners, had acquired a majority stake in Patni for $1.2 billion. The company had said it wanted to delist Patni from the Indian stock exchanges and New York Stock Exchange by mid-2012.