News Flashes

Satyam exits Sify; sells stake for $62.62mn

11th November 2005: Satyam Computer Services has divested its entire stake in Sify by selling 1,11,82,600 equity shares of Rs 10 each, represented by American Depositary Shares (ADSs), for $62.62 million to Infinity Capital Ventures LP.

"The move would enable Satyam to focus on its core business and unlock value of investments. Sify has emerged as a strong player in the data and network space in India. I am sure Sify's management team will continue to scale up Sify's growth with the active support of the new investor," B Ramalinga Raju, chairman of Satyam Computer Services, said.

"As against an original investment of $5 million in Sify in 1995, the company has received a total gross consideration of about $117 million till date - making it a highly successful and value creating investment for shareholders," the release added.

The deal, representing 31.61% of Sify's equity, has been concluded at $5.60 per share to be paid in cash by Infinity, a company controlled by Silicon Valley entrepreneur Raju Vegesna.

In an update released by Satyam to the BSE, "In a separate transaction, Infinity Capital also agreed to purchase, directly from Sify, approximately 6.7 million, newly-issued shares at a purchase price of Rs 256.09 (about $5.60) per share in cash. The closing of the direct purchase from Sify, representing an additional investment of Rs 172.10 crore (about $37 million at an exchange rate of Rs 45.73), is expected to occur in late 2005 upon receipt of stockholder and regulatory approvals."

The total position will represent approximately a 40% ownership interest in Sify for Infinity, the update added.

MphasiS to raise $20 m debt for buy-back

9th November 2005: MphasiS BFL, the Rs 900 crore software and BPO solutions firm, is planning to raise a debt of $20-$25 million in the near future to fund the proposed buyback of its shares in the next fiscal. The company on Tuesday said that it is restricting its buy-back plan to up to 10% of its shares.

Said Alok Mishra, CFO, MphasiS: “Our current valuation is in the range of $400 million and we would need approximately $40 million for the 10% we are planning to buy back. A part of this will be met by debt which we are planning to raise and the remaining will be from internal accruals.” MphasiS has $8 million cash reserves.

“The buy-back is expected to be closed during April-May 2006 and the reason for restricting it to a maximum of 10% is to hasten the process as more than 10% of the buy back will take a longer duration,” noted Mishra. He added that the buyback is being planned as MphasiS seeks to lower its floating stock. This had been raised recently for acquisitions and also a 1:1 bonus issue.

MphasiS had used a blend of stock and cash for the recent acquisitions of Princeton Consulting, Eldorado and Kshema Technologies. The company has been in the news in the recent past over the leakage of customer data from its business process outsourcing (BPO) unit, the failed exit of its principal investor Barings, and the reported pulling back of 1,000 people from the services of BPO client Abbey Bank of UK.

The company posted a net profit of Rs 40.16 crore, up by 27.4% for the quarter ended September 30, 2005, compared with Rs 31.51 crore for the corresponding quarter of the last year. Total income of the company was up by 20.47% from Rs 191.10 crore in the second quarter of the previous year to Rs 230.22 crore for the quarter ended September 30, 2005.

Aimco Pesticides - Open Offer

5th November 2005: Fortune Financial Services India Ltd ("Manager to the Offer") on behalf of Excel Crop Care Ltd ("Acquirer"), pursuant to and in compliance with Regulation 10 and 12 of Chapter III of The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulation, 1997, and subsequent amendments thereto ("SEBI Takeover Code" or "Regulations") has announced as below:

The Offer:

The Acquirer is making an Offer to the public shareholders of Aimco Pesticides Ltd ("Target Company") to acquire 18,50,000 fully paid up equity shares of the face value of Rs 10/- each, representing in aggregate 20.03% of the post issue paid up capital of the Target Company at a price of Rs 24.50 per equity share (Offer Price) payable in cash and subject to the terms and condition.

Schedules of Activities

Specified Date: November 21, 2005

Date of Opening of the Offer: December 16, 2005

Date of Closing of the Offer: January 04, 2006

Dolphin Offshore - Issue of FCCBs

5th November 2005: Dolphin Offshore Enterprises (India) Ltd has informed BSE that the Managing Committee of the Company at its meeting held on November 03, 2005, has decided to issue Foreign Currency Convertible Bonds (FCCBs) upto US $ 20 million including Green Shoe Option, subject to approval of the shareholders of the Company. Further the Company has informed that an Extra Ordinary General Meeting of the Company will be held on December 01, 2005, for getting the shareholders approval for the aforesaid issue of FCCBs.

JM Morgan to evaluate Indiabulls buyback plan

5th November 2005: The board of directors of Indiabulls Financial Services, which met yesterday, appointed J M Morgan Stanley as merchant banker and financial advisor and Nishith Desai Associates as legal advisor to give independent advice on a proposal to buy back shares. According to a release issued by Indiabulls to the BSE today, the board will meet again within 15 days to consider the buy back proposal after receiving reports from advisors, and completion of audit of the financial accounts of the company for the six months ended September 30, 2005.

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