Patni-iGate deal: A good note for M&As
January 11, 2011 18:37 IST
T he year 2011 seems to have begun on a good note for merger and acquisition deals in India [ Images ], as the first
transaction of the year -- $1.22 billion acquisition of Patni Computer by US-based iGate -- has been a billion-dollar
plus deal.
The previous year, 2010, was a record year in terms of the number of billion-dollar deals. In 2010, India Inc
announced merger and acquisition deals worth a record $55 billion which also includes a nine billion-dollar-plus deals
-- the highest-ever in a single year.
Experts expect India Inc's shopping spree will continue in the 2011 and IT sector might see further consolidation.
Consultancy major PriceWaterhouseCoopers Associate Director Abhijeet Ranade said that consolidation is inevitable
in the IT industry.
The first deal of the year has been from the IT space, where Patni Computer has been acquired by iGate along with
private equity firm Apax Partners. However, some other experts feel that IT space might see less number of deals
because there are very few companies.
On the other hand, they foresee consolidation in sectors like Telecom, textiles, financial services and healthcare.
"Overall M&A activity should be good but there will be very few deals in the IT industry because there are only 8-10
Indian companies in this space. We will witness billion dollars deals but small transaction will be seen," SMC Capitals
Equity Head Jagannadham Thunuguntla said.
iGate, along with Apax Partners, purchased 45.6 per cent equity held by Patni brothers Narendra, Gajendra and
Ashok and 17.4 per cent stake held by General Atlantic at a price of Rs 503.50 a share, costing $921 million.
The deal size, however, will go up to about $1.22 billion (more than Rs 5,400 crore), after acquisition of 20 per cent
from public shareholders at the same price of Rs 503.50 a share through the mandatory open offer.
In 2010, the M&A landscape was largely dominated by India Inc's global ambitions, with Indian companies acquiring
foreign assets worth $27.25 billion with a view to expand their market share -- as was seen in the case of Bharti-Zain
-- while Reliance Industries [ Get Quote ], Tata, Jindal and Coal India also sought to acquire assets abroad to ensure
consistent supply of raw materials on a long-term basis.
Other big-ticket transactions were the end of 26-year-old two-wheeler joint venture Hero Honda [ Images ] and JSW
Steel's [ Get Quote ] acquisition of an over 40 per cent stake in Ispat Industries [ Get Quote ] for about Rs 2,157 crore
(Rs 21.57 billion).
Patni Computer
Business
iGate seals Patni Computer deal - [Link] Business
Patni Computer is understood to have cleared nearly 63 per cent stake sale to US based iGate and a consortium
after several rounds of negotiations ......
Patni customers in wait-and-watch mode - [Link] Business
The current talks on stake sale by its promoters at India's seventh largest information technology services company,
Patni Computer Systems, seem......
Patni-iGate deal hit by procedural delays - [Link] Business
A stake sale deal between Patni Computer Systems and iGate is on course, but has been delayed due to procedural
[Link] involved in the deal......
Web results for Patni Computer
iGate CEO's salary more than doubled
IT services company iGate Corporationufffdufffdufffds President and CEO Phaneesh Murthy, who successfully led
the company to acquire Mumbai-based... ...
[Link]
iGate CEO's salary more than doubled
IT services company iGate Corporation's President and CEO Phaneesh Murthy, who successfully led the company to
acquire Mumbai-based IT and BPO... ...
[Link]
iGate CEO's salary more than doubled
IT services company iGate Corporation’s President and CEO Phaneesh Murthy, who successfully led the company to
acquire Mumbai-based IT and... ...
[Link]
iGateufffds Phaneesh Murthy gets a 100% pay hike
Barely two weeks after getting into the driver seat of a billion dollar entity ufffd Patni Computer Systems, a company
three times his own ufffd... ...
[Link]
iGate's Phaneesh Murthy gets a 100% pay hike
Barely two weeks after getting into the driver seat of a billion dollar entity -- Patni Computer Systems, a company
three times his own -- Phaneesh... ...
Amalgamation of Air India Limited and Indian Airlines
Limited with National Aviation Company of India Limited.
The Government of India, on 1 March 2007, approved the merger of Air India and Indian
Airlines. Consequent to the above, a new Company viz National Aviation Company of India
Limited (NACIL) was incorporated under the Companies Act, 1956 on 30 March 2007 with its
Registered Office at Airlines House, 113 Gurudwara Rakabganj Road, New Delhi. The Certificate
to Commence Business was obtained on 14 May 2007. Presently, the Board of NACIL consists of
:
Shri Raghu Menon, Addl Secretary & Financial Advisor, Ministry of Civil Aviation
Shri R K Singh, Jt Secretary, Ministry of Civil Aviation
Shri Rajiv Bansal, Director, Ministry of Civil Aviation
The Scheme of Amalgamation of Air India Limited and Indian Airlines Limited with National
Aviation Company of India Limited was approved by the Board of Directors of all the three
Companies.
Thereafter, the Meetings of Secured and Unsecured Creditors of Air India and Indian Airlines
were held in New Delhi on 28 June 2007, in which the Scheme of Amalgamation was approved
by the Creditors. The final hearing of the merger petition was held on 31 July 2007 wherein the
last date for submissions of objections was fixed on 8 August 2007 and the Order of the Ministry
of Corporate Affairs is awaited.
The Authorised and Paid-Up Share Capital of the merged entity will be Rs.1500,05,00,000/- and
Rs.145,00,00,000/-, respectively.
It has been decided that post merger, the new entity will be known as “Air India” while
“Maharaja” will be retained as its mascot. The logo of the new airline will be a red coloured
flying swan with the “Konark Chakra” in orange placed inside it. The flying swan has been
morphed from Air India’s characteristic logo “The Centaur” whereas the “Konark Chakra” was
reminiscent of Indian’s logo. The Corporate Office of NACIL will be at Mumbai.
The Government has approved the appointment of Shri V Thulasidas and Dr V Trivedi as
Chairman & Managing Director and Joint Managing Director, respectively, of the merged entity,
with effect from the date of merger.