Saturday, Jun 19, 2010
MUMBAI (Dow Jones)--Maytas Infra Ltd. (532907.BY) Saturday said its board approved a proposal to sell a 20% stake in the company to SBG Projects Investments Ltd.--a member of the Saudi Binladin Group through a preferential issue of shares.
The Hyderabad based company will allot SBG Projects about 15.46 million shares, equal to 20% of the post-issue capital on a fully diluted basis, subject to terms agreed between the company, the investor and its promoter IL&FS Ltd., a statement on the infrastructure company's website showed.
SBG Projects will become a copromoter of the company after the investment and along with the existing promoters will make a mandatory 20% public offer according to local regulations.
The investment would be subject to receiving all regulatory approvals, the statement added.
Maytas Infra is one of three firms that were held by the family of B. Ramalinga Raju, who, in January 2009, admitted to cooking the books at Satyam Computer Services Ltd. (500376.BY), the software company he founded.
After Maytas Infra found it difficult to raise funds and win orders following the accounting scam at Satyam Computer, India's Company Law Board, a quasi-judicial body, directed IL&FS to take management control of Maytas Infra.
As of March 31, IL&FS Ltd. together with its group companies held a majority 37.01% stake in Maytas, according to Bombay Stock Exchange data.
Shares of Maytas Infra had gained over 12% last week. It closed at INR211.20, down 2.3% Friday.
-By Gurdev Singh Virk; Dow Jones Newswires; 91 22 6145 6119; Gurdev.Singh@dowjones.com
(END) Dow Jones Newswires
19-06-10 1249GMT
