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Oracle announced today that it will reduce its current 80.3 per cent ownership stake in Oracle Financial Services Software Ltd (formerly known as i-flex) to 75 per cent to meet the regulatory requirements adopted in India in June 2010.
According to the regulatory requirements, publicly listed companies on the Indian stock exchange must have a minimum public shareholding of 25 per cent by June 2013.
“Oracle is committed to continuing its strategic relationship with OFSS and expects to otherwise maintain its position as the majority owner and promoter of OFSS,’’ said a company statement.
Offer for sale route
Oracle intends to sell through an offer for sale (“OFS”) transaction the minimum portion of its shareholding in the company to meet the legal mandate.
“The timing and size of the OFS will be subject to market conditions, receipt of any necessary approvals, and other considerations and this announcement does not constitute an obligation on Oracle to divest any stake held in OFSS,’’ it added.
Morgan Stanley India Company Pvt Ltd and Deutsche Equities India Pvt Ltd have been appointed as brokers for the proposed OFS.
Oracle Financial Services provides IT products to the financial services industry globally.
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