iGATE accepts delisting of Patni shares for Rs 520

Published: Tuesday, April 10, 2012, 11:35 [IST]

IT major iGATE Corp, has announced that it was accepting the ‘discovered price' of Rs.520 a share for delisting the shares of its subsidiary Patni Computer Systems. The offer was made through a reverse book building process at the Bombay Stock Exchange between March 28 and March 30.

Phaneesh Murthy, CEO, iGATE Corporation said, “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.”

The remaining shareholders of Patni post the delisting will be able to offer their shares at the discovered price during the period of one year from the date of delisting. A separate offer letter in this regard will be sent to the shareholders who have either not participated in the offer or whose shares have not been accepted under the offer.

Commenting on the announcement, Sujit Sircar, CFO, iGATE Corporation said, “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.”

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Story first published: Tuesday, April 10, 2012, 11:35 [IST]

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