Nasdaq-listed iGate, the US-based enterprise software, data warehousing and consulting giant backed by London-based private equity firm Apax Partners, has announced plans to take its Indian Patni Computer Systems subsidiary private.
The company plans to delist Patni through the acquisition of ordinary shares at a price to be determined through a reverse book building process, the floor price for which is INR356.74 ($7.01) per share, an 8.2 per cent discount to the company’s closing price on the National Stock Exchange yesterday.
Shares will be acquired from the Bombay Stock Exchange, the National Stock Exchange as well as American Depository Receipts from the New York Stock Exchange. IGate will reportedly arrange a $215m debt facility to fund the process.
In January this year Apax backed iGate’s acquisition of a 63 per cent stake in Patni from its founders and US private equity firm General Atlantic for INR503 ($11.05) per share, amounting to a total value of $921m.
The purchase subsequently triggered an open offer for a further 20 per cent stake in the company under Indian regulatory law. At the time iGate predicted that the aggregate price for an additional 20.6 per cent Patni stake would be $301m if all shares were tendered, bringing the total deal value to $1.22bn.
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