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Satyam sells entire stake in Sify
One of the most recognized software companies in India Satyam Computer Services Ltd. has sold its entire stake in its former subsidiary Sify Limited. They sold the remaining share of around 31.61 percent in Internet firm Sify Ltd. to U.S.-based Infinity Capital Ventures Ltd. for $62.62 million.
Infinity Capital has also bought additional 6.7 million new shares of Sify worth $37 million at about $5.60 each in a separate cash transaction as per the statement released by Sify. Satyam says that with their stake in Sify gone, they can now concentrate on IT services and unlock the value of its investment.
Satyam also said that after putting in an investment of around $5 million in Sify, Satyam had made $117 million to date. Sify on their part would be seeking shareholder and regulatory approvals to complete the deal by the end of the year. Infinity Capital now owns close to 40% of the shares in the company and Raju Vegesna, Infinity founder would be serving as the new chairperson of Sify.
Sify plans to continue with their business ventures in consumer services, including portals and internet access, corporate services and international IT infrastructure management services. They operate the ISP Sify Broadband, which is one of the most extensive chains of broadband service providers in India.