Satyam acquires infra firms for $1.6 billion

Satyam acquires infra firms for $1.6 billion
PTI
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First Published: Tue, Dec 16 2008. 07 05 PM IST
Hyderabad: Country’s fourth largest software exporter Satyam Computers today announced that it will acquire infrastructure firm Maytas Properties and the majority stake in Maytas Infra for a total of $1.6 billion.
The Board of Directors has approved the proposal to acquire 100% stake in Maytas Properties for $1.3 billion and 51% in Maytas Infra for $0.3 billion, Satyam said.
“The two acquisitions pave the way for accelerated growth in additional geographies and market segments such as transportation, energy and several infrastructure sectors for the core IT business,” Satyam Chairman B Ramalinga Raju said.
The two properties are promoted by Raju’s son Teja Raju and Mytas Infra is listed on domestic bourses.
“The deal would de risk the core business by boot- strapping a new business vertical in infrastructure,” he said, adding that this market segment can mitigate risks attributed to developed markets and traditional verticals that are likely to be impacted by the recessionary trends in the economy.
The acquisition of Maytas Properties would be immediate while in case of Maytas Infra, Satyam would acquire 31% from the promoters and make an open offer for additional 20% from the public as the company is a listed entity.
The price proposed to be paid to promoters is Rs475 per share, while the price for the open offer has been approved to be Rs525 per share and is subject to change in line with SEBI regulations.
Maytas Infra, engaged in the business of infrastructure, construction and asset development, while Maytas Properties is a scale player in development of urban space infrastructure.
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First Published: Tue, Dec 16 2008. 07 05 PM IST