BPO major Genpact will repurchase its common shares worth up to $300 million (about Rs 1,839 crore) under a modified ‘Dutch auction’ tender offer starting today.
Dutch Auction is a public offering auction structure in which the price of the offering is set after taking in all bids and determining the highest price at which the total offering can be sold.
In a filing to US SEC, Genpact late Wednesday night said: “It intends to purchase up to $300 million of its common shares through a modified ‘Dutch auction’ tender offer that it expects to commence on March 6, 2014.”
Also in some cases, the price on an item is lowered until it gets a bid. The first bid made is the winning bid and results in a sale, assuming that the price is above the reserve price.
“Genpact intends to finance the share repurchase from available cash and cash equivalents and borrowings under its existing credit facility,” the filing added.
Genpact generated $311.6 million in cash from operations in 2013, up from $310.7 million of cash a year earlier, which included about $45 million from an upfront client payment. It had about $571.3 million in cash and cash equivalents as of December 31, 2013.
Under the terms of the tender offer, Genpact shareholders will have the opportunity to tender some or all of their shares at a price per share of not less than $16.50 per share and not greater than $18 per share, it said.
Prepaid Cards Now For Buying Tickets – Suresh Prabhu
Hope Political Prisoners Are Released: Masarat Alam To Nnis
Bihar Govt Has Not Given The Lands As Promised To Dalits: Bjp
" Never Objected To Hurriyat At Pak High Commission Events – Tharoor "
Vintage Design: The Montblanc Fountain Pen
The Holiday Professionals - A Chef In Portugal