Patni gets shareholders' nod for delisting

IT firm Patni Computer Systems on Mondaysaid it has received shareholders' approval for delisting the company from theIndian bourses and the New York Stock Exchange.

In a regulatory filing, Patni Computer Systems saidshareholders of the company have approved the delisting proposal with a"requisite majority".

As per the delisting proposal, equity shares of Patni wouldbe delisted from the BSE as well as the National Stock Exchange and itsAmerican Depository Receipts (ADRs) would be delisted from the New York StockExchange.

US-based iGate acquired Patni Computer Systems last year andintends to delist the domestic company from the Indian bourses and New YorkStock Exchange by mid-2012.

iGate had acquired a majority stake in Patni in January thisyear for $1.2 billion in one of the largest deals in the Indian IT sector.Following an open offer, iGate now holds a stake of about 82 per cent in Patni.

The delisting will be done through the reverse book-buildingprocess and iGATE has indicated a floor price of Rs 356.74 per share - theminimum level at which shares have to be purchased.

However, iGate has the right of not purchasing the offeredshares if the final price discovered through the above process is notacceptable to it.

On November, 16, 2011, the board of directors of PatniComputer approved the delisting proposal.

"Given the low liquidity in the company's equityshares, the delisting proposal would provide the public investors of thecompany with ability to exit fully from shares of the company," thecompany had said.