Oracle to pay $531 mn for 20% in i-flex

Oracle Corp today announced a 20 per cent open offer for shareholders of i-flex Solutions for $531 million (nearly Rs 2,496 crore), putting the valuation of the software development company at Rs 12,480 crore.

Oracle, the world's largest database software maker, offered to buy 16,629,023 i-flex Solutions shares at Rs 1,475 apiece. The offer is priced at a 2.48 per cent premium over today's close of the i-flex scrip at Rs 1,439.25.

The offer will remain open between November 6 and November 25. DSP Merrill Lynch is the manager for it. Oracle's stake in i-flex may go up to 75 per cent if the offer is fully subscribed.

The Oracle offer is in line with the Securities and Exchange Board of India takeover regulations that require a group or individual to come out with a 20 per cent open offer to minority shareholders after their acquisition of shares in excess of 5 per cent of a company in a year.