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The capital market regulator SEBI has given its final observation on iGate's Rs 1,349-crore open offer to investors of Patni Computers, according to information on the SEBI Web site.
The open offer for purchase of 20 per cent additional stake in the company was triggered when iGate announced its plan to acquire a 63 per cent stake in Patni Computers in January 2011. The size of the deal is approximately Rs 4,188 crore.
Once the open offer is triggered, the total size of the deal would come to around Rs 5,500 crore. According to the open offer deal, any company which buys more than 15 per cent stake in a company is mandated to make an offer of an additional 20 per cent to the investors of the company being bought. The US-based iGate has offered to buy 20 per cent stake from the investors of Patni computers at the price of Rs 503.50 per share.
The open offer was originally scheduled to take place between March 4 and March 23. But it got delayed as the final approval from SEBI was awaited. The ‘final observation' status was issued on March 25, as per information on SEBI Web site. However, there was no information provided as to what these final observations were.
When contacted, iGate refused to comment on the issue.
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