iGate-Patni deal: Sebi seeks clarification

Market regulator Securities and Exchange Board of India (Sebi) has sought clarifications on the $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 a regulatory nod for about two months.

Sebi has sought a reply from the merchant bankers, Kotak Mahindra Capital Company. The offer by iGate was to open on March 4 and close on March 23.

In January, the US-based iGate-led consortium had clinched a deal to buy nearly 63 per cent for $921 million (Rs 4,188 crore) after several rounds of negotiations. The deal size, however, is to go up to about $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 $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 the Patni brothers — Narendra Patni, Ashok Patni and Gajendra Patni — along with General Atlantic's 17.4 per cent stake in the firm.