The Hindu Business Line : Sify Tech board approves arm’s merger

Sify Technologies Ltd, a Chennai-based consumer, Internet and enterprise services provider, will proceed with the planned merger of Sify Communications Ltd into Sify Technologies.

The company’s board approved the merger of Sify Communications, a majority-owned subsidiary of Sify Technologies, with and into the company, with the company as the surviving entity.

In August, the Nasdaq-listed 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 materialise. However, it left the option of merging the two entities open for review in future.

The board has reviewed the merger proposal and decided to proceed with the merger as the efficiencies, savings and benefits as a merged entity. The merger is subject to the approval of the Madras High Court, according to a company press release.

Mr M.P. Vijay Kumar, Chief Financial Officer, 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. This is a considered decision taken in the best interest of the company and its shareholders.”

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