IL&FS makes open offer for Maytas Infra

Infrastructure major IL&FS, the new promoter of Maytas Infra, today made an offer to buy an additional 20 per cent stake in the crisis-hit firm at Rs 112.80 a share.

In a public announcement made to the shareholders of Maytas Infra, IL&FS said its open offer would begin on October 24 and close on November 12, 2009.

"The offer is made to all the shareholders of Maytas Infra to acquire over 1.17 crore (up to 1,17,82,620) shares of the target company (Maytas) forming 20 per cent of the voting capital of the company at a price of Rs 112.80 a share," it said.

The total consideration payable under the open offer will be up to Rs 132.91 crore. Pursuant to successful completion of the offer, IL&FS' holding in Maytas would rise to 57 per cent.

The open offer price is over 9 per cent lower than the current price of Maytas Infra of Rs 124.30 on the BSE.

Maytas shares has been on an upswing for the ninth session in a row and has surged nearly 48 per cent since August 20.

The scrip has been locked in the upper circuit for the fourth straight day after surging 4.98 per cent to Rs 124.30 on the BSE.

SBI Capital Markets made the open offer announcement on behalf of IL&FS today.

On Monday, the Company Law Board had directed the family of fraud hit Satyam Computer Ramalinga Raju to transfer the ownership of Maytas Infra to IL&FS.

IL&FS currently holds 37 per cent stake in Maytas, which includes 15.5 per cent acquired through market purchase and a remaining 22 per cent via invocation of pledged shares.

As per the CLB order, IL&FS would hold a minimum 26 per cent of equity in Maytas for at least two years and shall keep management control in the company during the period, it said.

Indian takeover regulations necessitates a company to make an open offer for a further 20 per cent stake in the target company, if its holding stake beyond 15 per cent.

Maytas, which was promoted by the Raju family, came under government radar after the founder promoter of Satyam Computer disclosed of multi-crore fraud in the company in January.