Oracle to invest $125 million in i-flex

BANGALORE: Oracle today announced that it has agreed to invest $125 million (approximately Rs. 5,815 million) in i-flex solutions to fund growth initiatives, including its pending acquisition of Mantas, Inc.

i-flex will issue approximately 4.45 million equity shares to Oracle under a preferential allotment. The price of the shares under the preferential allotment will be Rs. 1,307.50 per share, which is the floor price established by the Securities and Exchange Board of India (SEBI) formula for a preferential allotment as of the reference date of August 13, 2006.

Upon completion of the preferential allotment, Oracle's ownership in i-flex is expected to increase from the current 52.5 per cent to 55.1 per cent. An Extraordinary General Meeting (EGM) of i-flex shareholders will be held on Tuesday, September 12 to approve the preferential allotment.

As required by Indian law, Oracle will make a mandatory open offer to purchase up to an additional 20 per cent of the shares outstanding from the remaining i-flex shareholders at a price of Rs 1,475.00 per share in

accordance with SEBI Regulations. The open offer price is based on the SEBI formula for the minimum price of the mandatory open offer.

DSP Merrill Lynch is acting as a manager of the open offer.

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