Patnis break deadlock over stake sale

The promoters of Patni Computer Systems, the country's sixth largest IT services company, have finally resolved their differences over stake sale to private equity investors.

The process has been set in motion with the Patni brothers""Ashok and Gajendra""deciding to take up non-executive positions.

Gajendra and Ashok have ceased to be executive directors with effect from Tuesday after the Patni board designated them as founder-directors.

This indicates that the two Patni brothers have agreed to retain less than 5 per cent stake each in the company, sources close to the development said. Their combined holding stands at 29 per cent now.

While Patni Computer refused to comment, sources said, Apax Partners and Texas Pacific Group are in the last lap of purchasing shares of the two Patni brothers.

While the private equity investor would buy the majority of the stake, Narendra Patni, the eldest brother and chairman and CEO of the company, might also buy a part of the shareholding of his brothers. Narendra Patni holds 14.69 per cent stake in the company.

At the current price, the company is valued at nearly Rs 6,300 crore. So the two Patni brothers' 29 per cent stake is valued at Rs 1,800 crore.

Narendra Patni had told Business Standard earlier that he was open to buying a part of his brothers' stake, provided the price was correct.

"I have built the company from scratch and would like the shares to find a good home when they are on offer," he said. Ashok and Gajendra Patni hold 14.87 per cent and 14.42 per cent respectively, in the company.

General Atlantic Partners, which holds a 16.38 per cent stake in the company, has also decided not to exit, he added. Other institutions holding stake in the company include Merrill Lynch and UBS.