WASHINGTON (dpa-AFX) - iGATE Corp. (IGTE) announced its intention to commence, through its subsidiaries Pan - Asia iGATE Solutions and iGATE Global Solutions Ltd., a process that could lead to the delisting of its Indian subsidiary, Patni Computer Systems Ltd.
iGATE noted that under applicable Indian laws, Patni can be delisted by the acquisition of ordinary shares of Patni if such acquisition would result in the equity interest of the iGATE group in Patni being at least equal to the higher of (a)90% of the total ordinary shares and (b)the aggregate of pre-offer shareholding of iGATE plus 50% of the delisting offer size.
Phaneesh Murthy, CEO, iGATE, commented, '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. While the price payable for the Patni shares will be determined pursuant to a SEBI mandated reverse book binding process, iGATE's ability to afford the price will be determined by a number of factors including the limitations on debt incurrence under its existing financing agreements.'
Copyright RTT News/dpa-AFX
