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Difference of opinion may be behind Patni stake sale
CNBC-TV18 has learnt that Ashok and Gajendra Patni may be looking to sell their stakes. The reasons - differences of opinion and a desire to raise cash for their individual ventures as their families grow.
CNBC-TV18 was the first to report on Friday that promoters of Patni Computer are looking at selling their stake.
Patni Chairman and CEO Narendra Patni on Monday sent out an email to employees assuring them that he did not intend to sell and was not aware of any other large investors' intentions to do. However CNBC-TV18 has learnt that his two brothers - Ashok and Gajendra - may be looking to sell their stakes.
The reasons - differences of opinion and a desire to raise cash for their individual ventures as their families grow. The two brothers and their families are believed to own just about two-thirds of the family's 44% stake in the company, which listed in February 2004.
Sources said the family has approached various investment banks to rope in buyers. Already, four bidders are believed to have shown keen interest though both stake and price are undecided.
On Friday, General Electric, Patni's largest client, offloaded about a fourth of its 2% stake in the company. GE sold 7 lakh shares in a block deal at the prevailing market price.
Though it was ranked sixth in Nasscom's 2005-06 rankings, at just over half a billion dollars in revenue, Patni has not been able to catch up with the top 5 who are all well over a billion.
Sources said that the deal if it does happen, would take a couple of months to go through. And like i-flex , MphasiS , Digital Globalsoft and FSS over the past few years, Patni could well be yet another midcap IT player that makes for a good takeover target.
Patni Chairman and CEO Narendra Patni on Monday sent out an email to employees assuring them that he did not intend to sell and was not aware of any other large investors' intentions to do. However CNBC-TV18 has learnt that his two brothers - Ashok and Gajendra - may be looking to sell their stakes.
