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Our Bureau

Bangalore Sept. 8 iGATE Corp has decided to spin off its staffing business, Mastech Holdings Inc, into a separate entity.

The board of directors of iGATE, approving the spin-off, has set a record date of September 16, for the proposed tax-free spin-off of Mastech. The board has declared a dividend of one share of common stock of Mastech for fifteen shares of iGATE common stock held, iGATE said in a statement.

“Separating the Mastech business from iGATE is the last stage in the restructuring process we began four years ago. At the end of September, we will have a singular focus as a pure play services provider, whose integrated technology and operations model provides the greatest value to our clients, employees and shareholders,” said Mr Phaneesh Murthy, CEO, iGate Corp.

The Nasdaq-listed iGATE delisted from the Indian stock exchanges recently.

The distribution of Mastech shares is expected to occur on September 30, to holders of iGATE common stock of record as of September 16.

It is anticipated there will be a ‘when issued’ public market for Mastech common stock. Mastech is expected to trade on the American Stock Exchange under the trading symbol “MHH”.

iGATE currently has approximately 53.9 million shares of common stock issued and outstanding. Based on the distribution ratio, iGATE expects to distribute approximately 3.6 million shares of Mastech common stock in connection with the spin-off.

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