Details of 4-1 split and Follow-on offering
SATYAM INFOWAY LIMITED ANNOUNCES 4-FOR-1 ADS SPLIT
Madras, India, December 20, 1999 - Satyam Infoway Limited (Nasdaq: SIFY), based in Madras (Chennai), India, announced today that its Board of Directors approved a 4-for-1 split of the company's American Depositary Shares ("ADSs") which are listed on the Nasdaq National Market. The holders of record of Satyam Infoway's ADSs as of January 5, 2000 will be entitled to three additional ADSs for each ADS held on that date.
The company's equity shares, which are not publicly traded, will not be split. Consequently, four ADSs will represent one underlying equity share. As of December 20, 1999, Satyam Infoway had 21,782,250 equity shares (of which 4,801,250 equity shares were represented by 4,801,250 ADSs) outstanding. Upon completion of the ADS split, the number of outstanding ADSs will increase to 19,205,000.
Satyam Infoway is the second largest national provider of Internet access and Internet services to consumers and businesses in India. The products of Satyam Infoway include consumer Internet access services, corporate network and technology services and on-line portal and content offerings. The Company is a subsidiary of Satyam Computer Services Limited, an Indian information technology services company which is traded on the principal Indian stock exchanges.
SATYAM INFOWAY LIMITED FILES WITH THE GOVERNMENT OF INDIA FOR NEW EQUITY FINANCING
Madras, India, December 20, 1999 - Satyam Infoway Limited (Nasdaq: SIFY), based in Madras (Chennai), India, announced today that it has filed an application with the Ministry of Finance of the Government of India for a follow-on offering of Amercian Depositary Shares by Satyam Infoway. The application seeks approval for an offering of up to $ 115 million (including greenshoe option of $ 15 million) in ADSs by Satyam Infoway in an underwritten public offering to be conducted in the United States. The timing of the offering will be determined once the necessary government approvals in India and the United States are obtained and based on market conditions.
The purpose of the offering will be to provide funds to exercise the option held by Satyam Infoway to purchase the 75.5% of IndiaWorld Communications Private Limited that it does not presently own and to provide funds for general corporate purposes. The payment required to exercise the option is approximately $75 million.
No offering of shares will be made unless and until a registration statement is filed with the United States Securities and Exchange Commission and is declared effective. Any offering will be made only by prospectus.
Satyam Infoway is the second largest national provider of Internet access and Internet services to consumers and businesses in India. The products of Satyam Infoway include consumer internet access services, corporate network and technology services and on-line portal and content offerings. The Company is a subsidiary of Satyam Computer Services Limited, an Indian information technology services company which is traded on the principal Indian stock exchanges.
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