iGate Corporation on Monday announced that it has accepted the discovered price of Rs 520 per share for delisting its subsidiary Patni Computers from the Indian stock exchanges which the saw the companys share price rise by 0.9 per cent on a weak trading day to close at Rs 495.5.
The price determined through the reverse book building process as per the Sebi regulations is at a premium of 5 per cent to the Mondays closing price of Rs 495.
Within the process,the public shareholders of the company were invited to bids through an offer that was open between March 28 and March 30.
We believe that the price of Rs 520 provides both a reasonable premium to the Patni public shareholders and is still accretive to iGATE shareholders while being strategic to the company. In addition,the better performance in Q4 2011 and the benefits of a streamlined corporate structure enabled us to arrange for some extra funding during the last week and raise the debt amount to $265 million, said Phaneesh Murthy,CEO,iGATE Corporation.
Post the delisting,the remaining shareholders of Patni can offer their shares at the discovered price over a period of one year from the date of delisting. However,the company will also send a separate offer letter to the shareholders who either did not participate in the offer or whose shares were not accepted under the offer.
With the front-end and shared services successfully integrated,we are confident that from here on,we will be able to integrate our delivery operations fully. The successful delisting will also set us up well for a possible downstream merger while also reducing costs of Compliance and Governance, said Sujit Sircar,CFO,iGATE Corporation.
iGate announced to acquire Patni for $1.2 billion in January 2011 and completed the acquisition by the middle of the year.