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| IL&FS new promoter of Maytas Infra: Khurshid |
| Press Trust of India / New Delhi Aug 31, 2009, 14:10 IST |
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Infrastructure major IL&FS has replaced the B Ramalinga Raju family as promoters of crisis- hit Maytas Infra and will pump in Rs 55 crore to revive the company.
"IL&FS will be the new promoter of the Maytas Infra", announced Corporate Affairs Minister Salman Khurshid at a press conference here today.
IL&FS, the largest shareholder in the Maytas Infra holding with about 37.1 per cent shares, has been permitted to appoint four directors including the chairman, said the Company Law Board (CLB) order passed earlier in the day.
Following the appointment of the new directors, Teja Raju, son of Satyam Computer Services' tainted-founder B Ramalinga Raju and Maytas promoter-director hitherto, will quit the board along with another director B Narasimha Rao.
As regards the four government directors on the board of Maytas, Khurshid said the government will recall two of its nominees, while the rest would continue.
Earlier, in pursuance of a CLB order, the government had appointed four nominee directors on Maytas board — K Ramalingam, Ved Jain, O P Vaish and Anil K Agarwal — to revive the company that was hit by an accounting scam in Raju-founded Satyam Computer. Maytas lost several orders, including the Hyderabad Metro project.
Even before Khursid went public with the information, shares of Maytas Infra surged five per cent to hit the upper circuit at Rs 112.80 on the Bombay Stock Exchange(BSE). It also hit the upper circuit at the National Stock Exchange.
On siphoning of money, Khurshid said: "There is no evidence of Satyam money flowing into Maytas." However, he said there are possibilities of money having gone from Maytas to Satyam.
Maytas Infra, was in the eye of a storm after a failed bid by Satyam Computers to acquire the company. Maytas subsequently suffered a severe cash-crunch. The CLB in its order today said that Maytas will submit a quarterly report on the affairs of the company to the two nominee directors, who shall continue for two years.
IL&FS for a period of two years have to hold a minimum of 26 per cent shares in the company and shall keep the management control of the company during that period, the order added.
IL&FS, which currently holds 14.5 per cent shares directly in Maytas, has been allowed to foreclose its rights on 22.6 per cent pledged shares, which would take up the total holding to 37.1 per cent.
CLB has also extended the date for the Annual General Meeting of the company to December 31, 2009.
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