IGATE Planning to delist PATNI from stock market

US Based IGATE acquired PATNI computer systems for $1.2B in january 2012. IGATE listed in Nasdaq and now they are going to delist patni from indian stock market by paying Rs 520 per share against its floor price of Rs 356. altogether IGATE will spend $272 million to delist patni computer systems from stock market.

The company has received 15.9 million shares so far and it will all be saved in an Escrow account, Mr Phaneesh Murthy, CEO of iGATE Patni, said at a press conference. The other shareholders have another year to surrender their shares, he said.
The company development won't be having any major impact of the operational side of the business but will cover the way forward in iGATE Patni's plans to rebrand the company and remove “Patni” from the brand name, Mr Murthy said.

Based on the performance of the company in the 4th quarter of 2011, the company has received a loan extension to $265 million from bankers, Mr Murthy said. This brings the total debt to $1,035 million including the $770 million debt it had taken in April 2011 to complete the acquisition.