Sify to raise capital of $57 Mn to fund growth
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Chennai: Sify Technologies, a consumer, Internet and enterprise services provider, has announced that it has entered into a Subscription Agreement with Infinity Satcom Universal, an Indian entity, to sell 12,817,000 Indian Equity Shares of the company to it at a price of $4.46 per share. The aggregate proceeds from this sale will be used to fund the company's growth and development is $57, 163, 820. The Share Purchase by Infinity Satcom Universal was approved by the Company's shareholders at the Extraordinary General Meeting on March 17, 2008. The purchasing company is an entity controlled by Ananda Raju Vegesna, an Executive Director of Sify Technologies, and brother of Raju Vegesna, the company's Managing Director and CEO. The Company sold the Shares to the Purchaser in an offshore transaction, and no selling efforts were made in the U.S. The Shares issued in the unregistered sale will not be registered under the Securities Act, or any state securities laws, and may not be offered or sold in the U.S. absent registration or an applicable exemption from the registration requirements of the Securities Act. Consequently, the Purchased Shares will not be registered in the U.S. and will not be traded there as American Depositary Shares. The Board of Directors of the Company approved a waiver of certain provisions of the Standstill Agreement on February 10, 2008, by and between the Company, Infinity Capital Ventures, L.P. and Raju Vegesna, dated November 10, 2005 filed on Form 6-K on November 21, 2005. At the request of Infinity Capital Ventures, the Board waived the provision of the Standstill Agreement prohibiting Infinity Capital Ventures and Raju Vegesna from acquiring additional shares of the Company. Both Raju Vegesna and Ananda Raju Vegesna abstained from voting on the waiver. The Board also approved the merger of Sify Communications on February 10, 2008, a majority-owned subsidiary of the Company, with and into the Company, with the Company as the surviving entity. The Merger was approved by the Company's shareholders at the Meeting convened by the High Court of Madras on March 17 this year. Consequent to this, the Company has filed the petition with the High Court for its confirmation and the orders of the High Court are expected by July 2008. On approval by the High Court, the Merger shall have retrospective effect from April 1, 2007.

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