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Raja Simhan T.E.

Chennai , Jan 2

SIFY Ltd has sold 26 per cent of its stake in Safescrypt to the Visakhapatnam-based Infinity Satcom Universal (P) Ltd for $3.1 million (about Rs 12 crore) in cash. The agreement to this effect was signed between Sify and Infinity on December 20.

In addition, Sify will transfer its virtual private network (VPN) service business to Safescrypt for about $11.1 million (about Rs 45 crore).

The valuation was arrived at based on a third party appraiser's opinion, according to information available on the Nasdaq Web site. (Sify is listed on the Nasdaq.)

Consequent to the agreement, Safescrypt will be renamed Sify Communication Ltd. Sify will hold 74 per cent stake in it, and the rest will be held by Infinity Satcom, according to a source.

Infinity Satcom is owned by Mr Anand Raju, brother of Mr Raju Vegesna, the Chairman of Sify's board of directors and principal of Infinity Capital Ventures, which owns 32 per cent of Sify's outstanding equity shares.

Safescrypt is a wholly owned subsidiary of Sify. Safescrypt issues digital certificates and provides public key infrastructure enabled services.

Safescrypt now plans to apply for NLD/ILD (national long-distance) and international long-distance (ILD) licences. It will offer VPN services and NLD and ILD Internet telephone services, the source said.

The existing regulations stipulate that not more than 74 per cent of the issued, allotted, subscribed, and outstanding share capital of the company shall be held by NRIs.

This includes overseas corporate bodies and companies incorporated in India in which the majority shares are held by such NRIs and overseas corporate bodies, the source added.

More Stories on : Mergers & Acquisitions | ISPs

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