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"SATYAM - MAYTAS - IFCI"

IL&FS to take control of Maytas Infra

BS reported that Infrastructure Leasing and Finance Company is poised to acquire management control of the troubled infrastructure company Maytas Infrastructure owned by family members of Mr Ramalinga Raju former chairman & MD of Satyam Computers, who confessed to financial fraud on January 7th.

The leading non banking finance company is emerging as a government preference given its prominent role in infrastructure finance in the country. IL&FS is among 19 banks and financial institutions that have collectively lent Maytas Infra INR 5,000 crore and is partner in several major Maytas projects including the Hyderabad Metro.

The state government, which has awarded many critical projects to the company is also reportedly in favor of an early solution. Sources said that a high level meeting between senior officials of the state government and IL&FS officials took place on Tuesday.
IL&FS, IFCI and small industries lender Sicom had extended loans to the Raju family against Maytas Infra shares. These lenders, therefore, had asked the government to supersede the board of the Hyderabad based company and requested a relaxation of open offer norms that require companies to offer shareholders an average of the last 6 months price.

As per report, the Raju family had pledged around 20% of Maytas Infra’s shareholding to IL&FS but the institution has chosen not to transfer this holding in its name because this move would trigger the open offer provision.

India Government sources said that the proposed exemption in the open offer that the Securities and Exchange Board of India is considering for Satyam may be extended to Maytas Infra because the circumstances are similar. A government official said that “There is an urgency to revive the company to protect the interest of lenders and all the existing projects that are under progress.”

(Sourced from Business Standard)

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