Satyam pursuing sale of Sify

By : |July 26, 2002 0



BANGALORE: Satyam Computer Services has said that it is still
actively looking to sell all or part of its 52.5 percent in its loss-making
Internet service provider, but did not provide further details. 

India’s No.4 software services exporter last October announced plans to
divest its stake in the Nasdaq-listed Satyam Infoway as it focuses on its
software business.

It has since not announced any new developments regarding the stake sale,
which analysts expect to be a big trigger for Satyam Computer’s shares. "Satyam
continues to actively pursue its objective of divesting its stake in Satyam
Infoway, in whole or in part," Chairman B. Ramalinga Raju told an analysts
conference call after the company announced results for the April-June quarter.

Satyam’s shares were down 2.5 percent at 214.90 rupees in late morning trade
on Thursday after it reported a nearly 11 percent year-on-year fall in
first-quarter profit, slightly more than analysts’expectations. Satyam Infoway
said last week its April-June net loss nearly halved from a year earlier. It
posted a first-quarter net loss of $8.7 million, down from $16.2 million a year
ago, but marginally higher than $8.4 million reported in the preceding quarter.

The company, which also provides e-commerce services and operates the portal
www.sify.com, has been cutting costs and increasing prices at a time when
smaller rivals have been going under. Satyam Infoway’s revenue rose 17 percent
year-on-year to $8.3 million. Last April, the company said it expects to start
generating cash by March 2003.

 

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