Infosys: Founder's Actions Damaging Company; Board Approves $2 Bln Share Buyback

(RTTNews) - Infosys Ltd (INFY) issued a statement categorically rejecting any allegation of discord between the company's Board and Sikka. On Friday, Vishal Sikka resigned as the Managing Director and CEO. The Board stated that it currently has no intention of asking Murthy, the Founder of Infosys, to play a formal role in the governance of the organization.

The company said it has come to the attention of the Board that a letter authored by Murthy has been released to various media houses attacking the integrity of the Board and Management of the company alleging falling corporate governance standards. The company believes Murthy's continuous assault, including the latest letter, is the primary reason that the CEO, Vishal Sikka, has resigned despite strong Board support.

"The Board believes it must set the record straight on the false and misleading charges made by Murthy because his actions and demands are damaging the company and misrepresent its commitment to good corporate governance," Infosys stated.

On Saturday, Infosys announced its Board has approved a proposal for the company to buyback its fully paid-up equity shares from the equity shareholders of the company for an amount not exceeding $2 billion. The Board also noted that, given the significant shareholding of US residents by way of ADSs and Equity shares, it was necessary for the company to seek and obtain exemptive relief from the US SEC on certain aspects of the tender offer procedures, due to conflicting regulatory requirements between Indian and US laws for tender offer buybacks, and the same has been obtained. The company noted that the holders of ADS may be able to participate in the buyback if such ADS holders cancel ADSs and withdraw the underlying equity shares to become equity shareholders of the company as on the record date.