Sify sells stake in MF Global Sify Securities India for $25M

NASDAQ-listed Indian Internet and IT firm Sify Technologies Ltd said it has completed the sale of its entire stake in MF Global Sify Securities India Pvt Ltd for Rs 139 crore ($25 million) in cash.

The firm had announced it is selling the stake in March this year, but had not disclosed the deal value. The firm said it has now received regulatory and statutory 'no objection approvals'.

It had struck the deal to sell off its stake in MF Global Sify Securities India Pvt Ltd in an all-cash deal to Singapore-based financial services company, PhillipCapital Group. Sify held 29.85 per cent of stake in the joint venture with MF Global, which is engaged in providing online and offline equity and derivatives trading for retail clients, besides other clearing services for financial institutions.

Sify spokesperson had said then that the deal could take 3-4 months to complete.

The parent group of the Indian subsidiary, MF Global, filed for bankruptcy last November owing to bad bets on Eurozone debt. This means PhillipCapital Group would in effect buyout the entire stake of the Indian financial services firm.

Earlier, Refco Inc was the JV partner of Sify in the Indian JV. MF Global came on board after Refco went bankrupt around six years ago.

(Edited by Prem Udayabhanu)