Saudi group to invest Rs.300 crore in Maytas Infra

June 21, 2010 02:06 am | Updated November 16, 2021 09:50 am IST - HYDERABAD

The Saudi Binladin Group (SBG), the construction conglomerate which had decided to pick up 20 per cent stake in Maytas Infra Limited, will invest Rs. 300 crore as part of the deal.

SBG executed a shareholders agreement on Saturday to invest 20 per cent in the equity share capital of Maytas Infra Limited at Rs. 195.30 per share (against share price of Rs. 211.20 at the close of market on Friday) for the 1.54 crore proposed to be allotted to it.

The agreement was signed in the presence of Indian Ambassador to Saudi Arabia Talmiz Ahmad and Saudi Arabian Ambassador to India Faisal H. Frad and the investment would be through preferential allotment.

Open offer

The SBG Group and the IL & FS, which replaced B. Ramalinga Raju's son Teja Raju as promoter, would make an open offer for acquisition of an additional 20 per cent from the market as stipulated by the SEBI regulations. Induction of SBG into Maytas Infra was a very positive development for the company and it also highlighted the closer working relationship between India and Saudi Arabia in the area of construction and infrastructure.

The deal would enable Maytas Infra to rebuild its strengths in the EPC space through a steady flow of contracts, agglomeration of execution capacity and access to Indian infrastructure space.

The partnership with IL & FS would enable SBG in project development skills and financial structuring capabilities in the region, according to a press release.

Meanwhile, the Corporate Debt Restructuring (CDR) cell had approved the debt restructuring proposal of Maytas Infra Limited. The CDR package had been approved with supermajority by the banks and the Maytas Board was hopeful of receiving the final letter of approval shortly.

Positive for company

The approval would enable the company to bring the overall debt to a sustainable level at a reasonable pricing and would support Maytas in its strategic and operational initiatives to strengthen cash flows.

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