Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Satyam Infoway Ltd-(Nasdaq:SIFY) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (711)	2/14/2000 8:22:00 PM
From: Mohan Marette	Respond to of 1471

Breaking news: Satyam Computers to divest 4% in Infoway for $200 million C Chitti Pantulu Hyderabad, February 14: Satyam Computers Ltd has decided to divest up to four per cent in subsidiary Satyam Infoway Ltd (Sify) to a strategic investor over the next few months. Satyam Computers holds 57 per cent in Satyam Infoway. A decision has been taken to divest the stake which should net close to $200 million at the current price of the Satyam Infoway ADR, senior company sources told The Financial Express. They, however, refused to identify the party. However, several big names, including Microsoft, SoftBank and Singapore Telecom had evinced interest in the company. America Online was one such company with which discussions were held and called off later, sources clarified. According to market sources, Sify was quoted at $95 per share on Nasdaq on Friday, up by a mind-boggling 97 per cent within a matter of just one week since filing its prospectus with the Securities and Exchange Commission (SEC) for its second ADR float. Of the ADR proceeds, $115 million will go towards financing the second leg of the Indiaworld deal with the remaining being used for infrastructure expansion for Satyam Infoway. The pricing of the second float will be known on Friday next and the scrip will start trading from next Monday, sources said, stating that the pricing could be close to its present market quote and should net about $150 million. At present, Satyam holds 57 per cent in Satyam Infoway while CDC has 17 per cent, and Sterling Commerce two per cent, Another 20 per cent is ADRs. Satyam, over the last two years, has adopted a strategy of investing in startups which has proved fetching, sources said, holding the company's healthy market cap as an example of prudent policy. "Satyam Infoway's valuation had shot up to $6 billion immediately after the takeover of Indiaworld and stands at around $9 billion today", sources said. This is one route which Satyam will be resorting to increasingly over the next few years with several of the joint ventures it has floated in the past reaching maturity. Some such investments include the 50:50 JV with GE Industrial Services, the 50:50 JV with Detroit-based Venture Industries and its 32 per cent equity stake in InTouch Technologies. While the Satyam Venture JV plans to go public in the third year of operations, the US-based telecom products company InTouch Technologies, in which Satyam has invested $2.5 million, will be listing on Nasdaq within one year. expressindia.com