Patni Computer Systems on Tuesday said that the US-based IT firm iGate has made an open offer for the 20.6% stake in the company, in accordance with the requirements of the market regulator Securities and Exchange Board of India (SEBI).
On Monday, after several rounds of negotiations, the US-based iGate-led consortium clinched a deal to buy nearly 63% stake in India's sixth largest IT firm Patni Computer for about $921 million (Rs 4,188 crore).
"The Acquirers---iGATE Solutions and iGATE Global Solutions Ltd and iGATE Corporation hereinafter referred to as person acting in concert (PAC) propose to acquire 2.70 crore shares of the Target Company representing 20.6% of the Current Equity Capital of the Target Company, at a price of Rs 503.50 per share," Patni said in a filing to the Bombay Stock Exchange (BSE).
iGate's open offer for Patni will start on March 4 and close on March 23, the filing added.
The deal size will go up to about $1.22 billion (more than Rs 5,400 crore), after acquisition of 20.6% from public shareholders at the same price of Rs 503.50 per share through the mandatory open offer.
The deal is expected to be completed in the first half of 2011, after obtaining all the regulatory approvals. iGATE expects the transaction to be accretive by 2012 on a cash earnings per share basis.
Shares of Patni Computer Systems dropped by 3.9% to an early-low of Rs 445.75 on the Bombay Stock Exchange.