Sebi seeks clarification on iGate-Patni deal

Sebi seeks clarification on iGate-Patni deal

Mumbai: Market regulator Securities and Exchange Board of India (Sebi) has sought clarifications on the $1.22-billion (more than Rs5,400 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 4 March and was to close on 23 March.

In January this year, US-based iGate-led consortium had clinched a deal to buy nearly 63% stake in India’s sixth largest IT firm Patni Computer for about $921 million (Rs4,188 crore) after several rounds of negotiations.

The deal size, however, is to go up to about $1.22 billion (more than Rs5,400 crore), after acquisition of 20% from public shareholders at the same price of Rs503.50 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 $301 million.

Under the deal, iGate, in a consortium with private equity firm Apax Partners, will buy the entire 45.6% stake of Patni brothers - Narendra Patni, Ashok Patni and Gajendra Patni - along with General Atlantic’s 17.4% stake in the firm.