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iGATE accepts Patni delisting offer of Rs. 520

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CIOL Bureau
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BANGALORE, INDIA: iGATE Corporation announced the results of the delisting offer of its subsidiary Patni Computer Systems Ltd (Patni) from the Indian Stock Exchanges, said a press release.

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Announcing the process as a success, iGATE accepted the discovered price of Rs.520 determined through a reverse book building process using the electronic facility of the BSE, in accordance with the SEBI Regulations.

The Public Shareholders holding equity shares of the company were invited to submit bids via an offer that opened on March 28, 2012 and closed on March 30, 2012.

Phaneesh Murthy, CEO, iGATE Corporation said, ''We believe that the price of Rs.520 provides both a reasonable premium to the Patni public shareholders and is still accretive to iGATE shareholders while being strategic to the company. In addition, the better performance in Q4 2011 and the benefits of a streamlined corporate structure enabled us to arrange for some extra funding during the last week and raise the debt amount to $265 million.''

The remaining shareholders of Patni post the delisting will be able to offer their shares at the discovered price during the period of one year from the date of delisting. A separate offer letter in this regard will be sent to the shareholders who have either not participated in the offer or whose shares have not been accepted under the offer.

Commenting on the announcement, Sujit Sircar, CFO, iGATE Corporation said, ''With the front-end and shared services successfully integrated, we are confident that from here on, we will be able to integrate our delivery operations fully. The successful delisting will also set us up well for a possible downstream merger while also reducing costs of Compliance and Governance.''

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