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Market regulator Securities and Exchange Board of India (SEBI) has sought clarifications on the $1.22-billion (more than Rs 5,400 crore) takeover of India’s sixth largest IT firm Patni Computer by the US-based iGate, which is awaiting regulatory nod for about two months.
The SEBI has sought reply from the Merchant Bankers (MB)—Kotak Mahindra Capital Company — of the deal on certain clarifications required for its clearance.
The open offer by the iGate was to open on March 4 and was to close on March 23.
In January this year, the US based iGate-led consortium had clinched a deal to buy nearly 63 per cent stake in India’s sixth largest IT firm Patni Computer for about $921 million (Rs 4,188 crore) after several rounds of negotiations.
The deal size, however, is to go up to about $1.22 billion (more than Rs 5,400 crore), after acquisition of 20 per cent from public shareholders at the same price of Rs 503.50 a share through the mandatory open offer.
The aggregate price for the shares to be purchased in the open offer assuming full tender is estimated at $301 million.
Under the deal, iGate, in a consortium with private equity firm Apax Partners, will buy the entire 45.6 per cent stake of Patni brothers — Narendra Patni, Ashok Patni and Gajendra Patni — along with General Atlantic’s 17.4 per cent stake in the firm.
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