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The three employees "will be entitled to receive an aggregate transaction bonus equal to a combined amount of two per cent of the total proceeds received by the Seller (Citigroup)" by virtue of the transaction.

Chennai , Aug. 7

THREE key members of i-flex Solutions's original management team will have reason to smile. Together, they would be richer by about Rs 52 crore after Citigroup completes the sale of its equity stake in i-flex to Oracle.

Last week, Citigroup Venture Capital International, Citigroup's arm, had agreed to sell its 41 per cent stake in i-flex to Oracle Corporation for a consideration of about Rs 2,580 crore.

Oracle Corporation has now started the process of making an open offer to acquire an additional 20 per cent equity under the SEBI Takeover Code.

According to the public announcement made under the Code, Court Square Capital, a unit of Citigroup, has "entered into individual agreements with Mr Rajesh Hukku, Chairman and Managing Director of i-flex, Mr Ravishankar, CEO (International Operations and Technology), and Mr Deepak Ghaisas, CEO (India Operations)."

The agreements specify that the three employees "will be entitled to receive an aggregate transaction bonus equal to a combined amount of two per cent of the total proceeds received by the Seller (Citigroup)" by virtue of the transaction between Oracle and Citigroup.

Two per cent of the sale consideration works out to about Rs 51.5 crore.

Though Citigroup's venture capital arm has agreed to sell out its equity stake, the public announcement has confirmed that Citigroup and i-flex have recently entered into a five-year product and services agreement covering the maintenance of the latter's flagship product, Flexcube.

Further, the equity share capital of i-flex is also set to increase by 2.83 million shares to 77.93 million shares if warrants and stock options (including options to employees) are exercised within 15 days after the closure of the open offer.

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