Sebi seeks clarity on iGate-Patni deal

The open offer by the iGate was to open on March 4 and was to close on March 23.

Market regulator Securities and Exchange Board of India (Sebi) has sought clarifications on the USD 1.22-billion (more than Rs 5,400 crore) takeover of India’s sixth largest IT firm Patni Computer by US-based iGate,which is awaiting regulatory nod for about two months.

Sebi has sought reply from the Merchant Bankers (MB)– Kotak Mahindra Capital Company — of the deal on certain clarifications required for its clearance.

The open offer by the iGate was to open on March 4 and was to close on March 23.

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In January this year,US-based iGate-led consortium had clinched a deal to buy nearly 63 per cent stake in India’s sixth largest IT firm Patni Computer for about USD 921 million (Rs 4,188 crore) after several rounds of negotiations.

The deal size,however,is to go up to about USD 1.22 billion (more than Rs 5,400 crore),after acquisition of 20 per cent from public shareholders at the same price of Rs 503.50 a share through the mandatory open offer.

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

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 stake in the firm.