iGATE has set in motion the process for delisting its Indian subsidiary Patni Computer Systems.
The delisting could happen through its subsidiaries Pan-Asia iGATE Solutions and iGATE Global Solutions Limited. The delisting is subject to approvals from the shareholders and regulatory authorities.
If consummated, (a) the purchase of ordinary shares of Patni will be carried out in accordance with the delisting regulations of the Securities and Exchange Board of India at a price to be determined through the reverse book-building process (the floor price for which is Rs.356.74 per ordinary share), and (b) the American Depositary Shares (ADSs) representing the ordinary shares of Patni could be delisted in accordance with applicable rules and regulations.
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iGATE has the right not to purchase the offered shares if the final price discovered is not acceptable to it. “iGATE proposes to arrange a debt facility of about $215 million, which is expected to serve as the source of funds to pay for the acquisition,” a release quoted Phaneesh Murthy, CEO, iGATE Corporation, as saying.
The delisting process, if successful, is expected to be completed by mid-2012.