Hyderabad: Satyam Computer Services Ltd has concluded the sale of 1.6 per cent stake in Satyam Infoway (Sify) to the Government of Singapore Investment Corporation Pte Ltd (GSIC).pSaloman Smith Barney, a member of Citigroup facilitated the transaction, a company release said on Monday.The company had entered into an agreement with GSIC to sell 347,200 equity shares of Sify. Consequent to the sale, Satyam Computers continues to own 54.7 per cent of Sify's outstanding equity, according to the release.Continued on Page II The pre-tax realisation from the sale of this nominal stake amounts to $49.3 million and the Satyam Computer's investment to date in Sify has been approximately $5.9 million, it added.
The company will use the sale proceeds to retire some of its outstanding debt.
The sale agreement grants GSIC a put option to sell its shares back to Satyam in the event Sify's shares are not listed on a recognised Indian stock exchange before September 30,2001.
Satyam Computers chairman Ramalinga Raju said: "We are very happy that a blue chip and long term investor like GSIC will now be an important investor in Satyam Infoway. We greatly value their participation in Sify."
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