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IGATE Corp. (NASD: IGTE) today announced plans to buy outstanding shares of Patni, its India-based subsidiary that it acquired in May, in order to delist the firm from the Indian stock exchange.
The delisting is subject to regulatory and shareholders’ approvals. The purchase price will be based on a reverse book building process, and will be at least Rs. 356.74 (US$6.99) per ordinary share.
“IGate believes that given the low liquidity of Patni’s equity shares, the delisting offer would provide the public investors of Patni with the ability to exit fully from the shares of Patni,” said iGate CEO Phaneesh Murthy. “If, however, after the reverse book-building process we conclude that the ultimate discovered price to purchase the Patni shares outweighs the benefits, we will examine our alternatives.”
IGate acquired the majority of Patni in May for about $1.22 billion.