Citigroup buys stake in Systems America

MUMBAI: The US-based Citigroup Corp said on Wednesday it has bought a 12.5

per cent stake in unlisted Indian software solutions firm Systems America

(India) through its investment arm Citicorp International Finance Corporation.

Citigroup said in a statement that its private equity arm had invested Rs 157

million ($3.4 million) to pick up the shares offered by Systems America through

a preferential issue of one million shares.

Systems America's chairman and managing director Adesh Tyagi told a news

conference that Citicorp's investment would be used mainly to fund acquisitions

in the e-business, wireless and telecom areas.

He also said his firm planned to launch its initial public offering in the

Indian capital markets in the next few months.

The firm, which is also entering the products business, expects to have

revenues of Rs 670 million in the year ended March 31, 2001, compared to Rs 135

million in the year ago, he said.

Citigroup has invested $2.06 billion in over 160 companies globally, the

statement said.

Citicorp International has invested nearly $70 million in India, including in

Rediff.com, Polaris Software, iFlex, Dishnet DSL and Silicon Automation Systems,

it said.

(C) Reuters Limited 2000.