The Saudi Binladin Group has picked up a 20% stake India's Maytas Infra Ltd for 3 billion rupees ($64 million), Maytas said in a statement on Sunday.
The Saudi Binladin Group couldn't be reached for comments immediately.
The Saudi Binladin Group and IL&FS–the controlling stakeholder in Maytas–will jointly make an open offer to acquire an additional 20% from Maytas' existing investors, in line with regulatory guidelines.
The transaction values Maytas at INR193.50 a share, while its shares closed trading on Friday at INR211.20.
Maytas Infra was founded by family members of Satyam Computer Services Ltd.'s (SAY, 500376.BY) erstwhile chairman B. Ramalinga Raju. Satyam was embroiled in an accounting scandal in 2009 after Raju admitted to cooking the books, inflating profits for several years. As the Satyam scandal broke, many of Maytas' clients in the infratructure sector yanked back their orders, plunging it into a crisis. A financial firm, IL&FS Ltd., took a controlling stake of 37% in Maytas in August 2009, as the Raju family exited the company.
On Sunday, Maytas said the company has reached settlement with several banks to pare down its debt to INR8 billion from INR18 billion. It has cut its debt by agreeing on a one-time settlement of some debts and converting some of the debt into preference shares and other equity instruments.
Source: WSJ