Oracle to sell stake in OFSS for meeting regulatory requirements

Oracle to sell stake in OFSS for meeting regulatory requirementsGlobal IT giant, Oracle has said on Wednesday that it would sell 5.3 per cent stake in Oracle Financial Services Software (OFSS) to comply with regulatory requirements in India.

The company said that it would reduce its stake in the Indian unit form 80.3 per cent at present to 75 per cent in order to meet regulatory requirements prescribed by capital market regulator, the Securities Exchange Board of India (SEBI) in June 2010. SEBI shareholding norms require all publicly listed companies on the Indian stock exchange to have a minimum public shareholding of 25 percent by June 2013.

“Oracle is committed to continuing its strategic relationship with OFSS and expects to otherwise maintain its position as the majority owner and promoter of OFSS,” the company said in a statement.

Oracle is planning to sell the stake through an offer for sale transaction at the exchange in India. The company said that the sale of the minimum requires stake will be undertaken soon. It also said that the timing and the value of the transaction will depend upon market conditions and regulatory approvals. Morgan Stanley India Company and Deutsche Equities India have been appointed as the brokers for the stake sale.