IT majors are getting ready for buying stake in the Chennai-based financial software firm with the possibility of Citigroup''s plans to sell the 43 per cent stake in the Polaris Software. IBM could be a clear frontrunner along with Wipro. The negotiations could be at Rs 60 per share which is double the current market price. Both of these companies are keen to acquire stake in Polaris as the firm offers unique retail banking solutions. But with global losses mounting this is one Citi which clearly has lost its sleep. The firm needs cash so just one month after it sold off its captive BPO, cashing out of Polaris makes sense.
Citigroup along with its wholly-owned subsidiary Orbitech owns over 43 per cent stake in Polaris is on the block and such a move would automatically trigger an open offer for another 20 per cent stake. If successful it would mean the others apart from the promoters will hold 63 per cent stake translating to a buyout. The promoters currently hold 29 per cent in the company.
Citigroup along with its wholly-owned subsidiary Orbitech owns over 43 per cent stake in Polaris is on the block and such a move would automatically trigger an open offer for another 20 per cent stake. If successful it would mean the others apart from the promoters will hold 63 per cent stake translating to a buyout. The promoters currently hold 29 per cent in the company.
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