Patni takeover - more players join the fray

After rumours of two Patni brothers selling out their 28% stake to a clutch of foreign PE players, now another PE player, UK based Apax partners has jumped into the fray and wants to buy stake of 2 promoter brothers and General Atlantic’s 16% stake for over $800 million, valuing the company at around Rs. 725 crores.

For the stake, APAX may pay upto 10% premium to the exisitng price. As a results Patni scrip on NSE touched an intraday high of Rs. 567, a 5% jump over previous day close. The deal if happens would be the biggest in Indian IT surpassing the Oracle-I-flex, EDS-Mphasis and buyout of  Flextronics (formerly Hughes Software Systems) by Kohlberg Kravis Roberts.

Update (09-June-07): ET has written that the media face and in charge of operations of Patni Computer, Mr. Narendra Patni would retain his 14% stake, while the 2 younger brothers would sell theirs. Another PE player, Carlyle is reported interested in the deal.

Via: The Economic Times