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News >> Technology >>
Raju Vegesna infuses $62M into Sify
By siliconindia staff writer
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Thursday, 10 November 2005, 20:30 IST
BANGALORE: Silicon Valley based entrepreneur Raju Vegesna has acquired 31.61 percent stake in Sify, one of IndiaÂ’s biggest portals.
The total investment in the NASDAQ listed Sify (NASDAQ: SIFY) by VegesnaÂ’s Infinity Capital Ventures amounts to $62.6 million, a company release said.
In a separate transaction, Infinity Capital has also agreed to purchase directly from Sify approximately 6.7 million newly-issued shares at a purchase price of $5.60 per share in cash.
The closing of the direct purchase from Sify, representing an additional investment about $ 37 million, is expected to occur in late 2005 upon receipt of stockholder and regulatory approvals. The sale of the Satyam shares has been completed and is not contingent on the Sify issuance. The total position will represent approximately a 40 percent ownership interest in Sify.
Commenting on the acquisition of Satyam’s shares in Sify, Raju Vegesna said, "Sify has done very well to innovate and grow its businesses in Internet and network services in India. The company represents the right fit in terms of market opportunity, innovation and leadership in this fast growing market, and I am excited at the prospect of helping Sify realize its great potential by building upon its market-leading iWay cyber café and Enterprise Solutions business segments while further exploiting Sify’s expertise in Internet and network technologies.
Commenting on the transaction. B. Ramalinga Raju, Chairman of Satyam Computer Services Ltd., said, "The move would enable Satyam to further focus on its core business and unlock the value of its investment. Leveraging SatyamÂ’s brand and committed support, Sify has emerged as a strong player in the data and network space in India. I am sure that SifyÂ’s management team will continue to scale up SifyÂ’s growth with the active support of the new investor."
R Ramaraj, MD & CEO of Sify Limited said, "We have always enjoyed a strong supportive relationship with Satyam. We are particularly happy that Satyam is divesting to a strategic investor with a long-term interest in SifyÂ’s growth and future. We look forward to working closely with Raju Vegesna to build on SifyÂ’s track record of growth, quality standards and innovative services, and to continue to lead the market in India and internationally."