Raju steps down from Sify board following dilution of stakes

Hyderabad:
10 December 2002

Srini Raju, another director on the Sify board, was also replaced in the reconstitution exercise, relating to Satyam’s nominees, approved by the board of directors of Sify on Monday.

Chief financial officer V Srinivas and senior vice-president (corporate strategy) K Thiagarajan will be the new nominees of Satyam Computer on Sify’s board of directors, says a company communiqué.

The changes would take effect on receipt of investments from the new investors, Softbank Asia Infrastructure Fund (Saif), a partnership venture between Softbank and Cisco Systems, and VentureTech Solutions Pvt Ltd.

Satyam Computer had, in October this year, announced that the dilution of its stakes in its Internet subsidiary through an allotment of 11.62 million shares of Sify to an arm of Saif and VentureTech.

Says Raju: “Even as I step down from the Sify board, I am heartened and gratified at having played a part, along with the Sify team, in promoting and building Sify to a leadership position in the Internet space, with several pioneering initiatives.”

The approved proposals included issue of shares to an affiliate of Saif and VentureTech, pending financing transaction, an additional allocation for the Association Stock Option Plan, and an amendment to Articles of Association to incorporate specified rights of the new investors.