Update: Sify has announced the conclusion of the sale of their entire stake in MF Global Sify Securities India Pvt Ltd, as it has received necessary Regulatory and statutory ‘no objection approvals’ for change in control. Sify informs that the aggregate amount received by Sify against the stake and the rights therein is Rs 139 crores (USD 25 million) in cash.
28th March 2012: Sify Technologies Limited has announced that it is selling its entire stake in MF Global Sify Securities India Pvt Ltd. in an all cash deal. According to Sify, MF Global Overseas Limited and PhillipCapital Group, the Singapore based financial services company, through its related companies, will buy a majority stake in MF Global Sify Securities India Private Limited.
MF Global Sify Securities provides intermediary and matched principal brokering services, offering online and offline equity and derivatives trading for retail customers, as well as execution and clearing services for financial institutions. While Sify had a minority, 29.85% stake in the company, the rest was held by MF Global Holdings.
The financial terms of the transaction have not been disclosed, and it is subject to regulatory and statutory approvals in the respective countries.
Disputes In The Past
All was not well between the Sify and MF Global. In 2010, Sify had disputed financials of the subsidiary saying that certain recorded cross charges of corporate expenses made by MF Global Holdings and affiliated entities, to MF Global Sify Securities and had said that it believed that the charges, and various related actions, violated a shareholders’ agreement among the parties. This had led to Sify being unable to file its audited financial statements for FY 2009-10.