The Hindu Business Line : Oracle raises i-flex stake to 50.6 pc

Oracle Corp, along with holding company Oracle Global (Mauritius) Ltd, have mopped up 7.52 per cent of i-flex Solutions' equity in two tranches from the open market between March 13 and April 13.

In the latest open market acquisition, Oracle Global acquired 24,24,632 shares aggregating to 3.2 per cent of i-flex's total paid-up capital between March 27 and April 13. With this, the equity holding of Oracle Corp and Oracle Global has increased to 3,86,28,148 shares aggregating to 50.6 per cent of the total capital of i-flex.

Oracle paid a hefty premium of between 53.5 per cent and 67 per cent for acquiring this additional 3.2 per cent stake over the open offer price of Rs 882 per share it paid in August last. Earlier, between March 13 and 24, Oracle had paid a premium of between 37 per cent and 58 per cent for acquiring 4.5 per cent stake from the open market over its open offer price.

Market sources said that Oracle has the flexibility to pick up another 1.8 per cent of i-flex's equity from the open market this financial year to consolidate its holding. According to the take-over guidelines, a compnay can buy up to 5 per cent equity through the creeping acquisition limit in any financial year.

Last year, Oracle acquired a 41 per cent stake in i-flex from Orbitech Ltd, and, subsequently, made an open offer for additional 22 per cent stake at Rs 882.6 per share.

Oracle could mop up only a 2 per cent stake in the open offer as the i-flex stock traded consistently at a price higher than the market price.

Since November last year, shares of i-flex have seen a significant upside of close to 67 per cent even as the stock hit a 52-week high of Rs 1,475 on the Bombay Stock Exchange on April 13. On Monday, i-flex shares ended higher by about 2.18 per cent at Rs 1345.5 on BSE over the previous close.

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