Sify to sell entire stake in MF Global Sify Securities

Sify Technologies Limited, a managed enterprise, network and ICT services company, has reached an agreement to sell its entire stake in MF Global Sify Securities India Pvt Ltd to PhillipCapital Group, the Singapore-based financial services company, for an all-cash deal.

When contacted, Sify officials declined to comment on the transaction value.

PhillipCapital, which runs brokerage and asset management business across 13 countries, said it would plan to rename the business Phillip Securities India.

No financial terms of the deal were disclosed and the transaction is still subject to regulatory approval.

PhillipCapital said it will buy a majority stake in the joint venture between Sify Technologies and MF Global and has also agreed to buy the rest of the bankrupt US broker's Indian operations.

Sify was holding around 30% stake in MF Global Sify Securities India.

According to the terms of the agreement entered with MF Global Sify Securities India Pvt Ltd, MF Global Overseas Limited through its related companies, will buy a majority stake in MF Global Sify Securities India Private Limited.

The transaction is subject to regulatory and statutory approvals in the respective countries. MF Global Sify Securities India started as a 70:30 joint venture between US-headquartered MF Global’s wholly-owned subsidiary, MF Global Holdings Overseas Ltd and Sify Technologies Ltd.

It offers equity and derivatives trading for retail customers as well as execution and clearing services for financial institutions.

MF Global filed for bankruptcy in October after revealing exposure to risky European sovereign debt. Its chief executive Jon Corzine resigned days later.

Provisional liquidators reported in November they had received more than 50 offers to buy MF Global's entire Asian operations but difficulties unwinding trading positions meant they failed to reach an agreement on a sale.