New Capital
Contrarian, deep value, long/short equity, special situations

Genpact Tender Offer - 5% Guaranteed Return In 2 Weeks

Genpact Limited (NYSE:G) recently announced tender offer to purchase up to $300m of common shares, which represent 7.5% of the market cap. Shares are expected to be purchased at $18 vs $17.1 current price. The tender offer will end on 2 April, providing current buyers with 5% return in two weeks or 130% annualized with no downside risk.

This idea might be more relevant for smaller investors as for holders of less than 100 shares, the share purchase is guaranteed. At the same time, I believe it is quite likely that the total number of shares tendered will be below the $300m, and thus pro rata adjustments to tendering shareholders might not be applicable, making it a guaranteed...

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