The Hindu Business Line : Sify calls EGM on Feb 28

SATYAM Infoway Ltd has called for an extraordinary general meeting (EGM) on February 28 for the company's board of directors "to consider to sell the business of software services division as a going concern to its parent firm, Satyam Computer Services Ltd, for a transaction value of Rs 3,325 lakh (rupee equivalent of $6.9 million converted at Rs 48.18) payable in cash".

After announcing its consolidated US GAAP results on Wednesday, the company had filed its Form 6-K, Report on Foreign Issues, with the Securities and Exchange Commission, US, calling for the EGM.

The EGM would also consider a special resolution, subject to confirmation of the Company Law Board, to shift the company's registered office from Andhra Pradesh to Tamil Nadu.

Sify in its filing had said that the "proposal is to sell the company's software services division in its entirety, with customers and people, which will be acquired by Satyam Computer Services Ltd (SCSL).

The company had appointed Ernst & Young, independent valuers, to assess the fair value of the business. In the fairness opinion report, Ernst & Young has opined that the transaction value of Rs 3,325 lakh is fair and reasonable from a financial point of view." Meanwhile, on the Nasdaq, the company's American Depository Shares last traded at $2.29, and as on January 16, the outstanding shares was 96,732,000 with a market value of $212,356,280.

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