Blackstone to buy minority stake in Sify
US-based Blackstone Group is in exclusive talks to acquire a minority stake in Chennai's Sify Technologies, Bloomberg reported. Sify has sought a valuation of around $1 billion to $1.2 billion in a transaction. It’s unclear what valuation the Blackstone stake purchase will be struck at and talks could still fall apart.
Raju Vegesna, Chairman and Kamal Nath, CEO owns and operates data centers as well as India’s largest multiprotocol label switching, or MLPS, network . In a January earnings call, the company said it was expanding its data-center footprint in cities including Mumbai, Noida and Chennai.
However, it is unclear what valuation the Blackstone stake purchase will be struck at and the talks between the firms could still fall apart. Sify’s American depositary receipts rose 6.7% in pre-market trading on Friday in the U.S. The company had a market value of about $484 million as of Thursday.
Sources revels that, Blackstone has struck several deals in India in recent months, acquiring the glass unit of conglomerate Piramal Enterprises Ltd. and real estate assets from developer Prestige Estates Projects Ltd. Aadhar Housing Finance, controlled by the asset manager, has filed a draft prospectus with India’s market regulator in January for an initial public offering that could raise about $1 billion.
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