Sify Technologies Drops MF Global India for Cash

Sify (News - Alert) Technologies announced today they plan to sell their entire share of MF Global Sify Securities India Pvt Ltd. The recipient is reportedly PhillipCapital Group, a financial services firm based in Singapore, and MF Global Overseas.

Terms of the deal weren't disclosed, but PhillipCapital and MF Global Overseas likely saw a reasonable price, as MF Global Sify Securities is 70 percent held by MF Global, which declared bankruptcy.

Sify Technologies is one of the largest Managed Enterprise, Network, and IT Services companies in India. Their transaction is subject to the approval of regulatory authorities in both India and Singapore.

Following the deal, Sify Technologies reportedly saw its ADRs climb seven percent in afternoon trading on the NASDAQ; respective markets surely relished the move as well, as Sify has previously divested things unrelated to their core business in a bid to streamline its lineup. The firm’s recent sale may therefore be seen as an effort to return to more lucrative investments in their core business plan.

Of course, it's worth asking why Sify decided to make this sale now as opposed to waiting, or doing so previously. Considering Sify's 52-week low is currently $2.60 a share – relative to an $8.54 high – Sify may have been looking for quick cash to fund other projects, or possibly give the market a reason to pump some new life into the old shares.

Regardless of its motivation, Sify made a smart move and saw a positive market response.