Sify Comm to be merged into Sify Tech

BANGALORE, INDIA: Sify Technologies Limited, a leader in Consumer, Internet and Enterprise Services in India with global delivery capabilities, announced today its decision to proceed with the planned merger of Sify Communications Limited into Sify Technologies Limited. The Board today approved the merger of Sify Communications Limited, a majority-owned subsidiary of Sify Technologies Limited, with and into the Company, with the Company as the surviving entity.

M P Vijay Kumar, CFO, Sify Technologies, said, "Upon reviewing the current environment and the ongoing global financial crisis, the Board decided that the benefits of merging the two companies outweigh the opportunities that may unfold from government regulation and policies in future. The efficiencies, savings and benefits as a merged entity would strengthen the company and contribute to its ability to perform despite the challenging financial environment. This is a considered decision taken in the best interest of the company and its shareholders."

In August 2008, the company had announced the withdrawal of a similar proposed merger as operating as independent entities may have been beneficial given opportunities that were expected to materialize. However, it left the option of merging the two entities open for review in future. The Board has now reviewed the merger proposal, and decided to proceed with the merger as the efficiencies, savings and benefits as a merged entity would strengthen the company and contribute to its ability to perform despite the challenging financial environment. The merger is subject to the approval of the Madras High Court.