Satyam acquires infrastructure firms for $1.6 bnDecember 16th, 2008 - 8:58 pm ICT by IANS
Bangalore, Dec 16 (IANS) IT major Satyam Computer Services Tuesday announced the acquisition of two Hyderabad-based infrastructure sister firms - Maytas Properties and Maytas Infra - for $1.6 billion (Rs.79.2 billion).In a notification to the stock exchanges, the listed firm said its board had approved buying 100 percent stake in Maytas Properties for $1.3 billion (Rs.64.35 billion) and 51 percent stake in Mayatas Infra for $300 million (Rs 14.85 billion).
“The acquisition of Maytas Properties will be immediate, while that of Maytas Infra will be in two phases. In the first phase, 31 percent will be bought from promoters at Rs.475 per share and the remaining 20 percent from the public through an open offer to the investors of the listed firm at Rs.525 per share,” the company said.
Satyam founder-chairman B. Ramalinga Raju said the acquisitions would pave the way for accelerated growth in new geographies and market segments such as transportation, energy and infrastructure sectors for the core IT business.
“The buyout will de-risk the core business by bootstrapping a new business vertical in infrastructure. This market segment can mitigate the risks attributed to developed markets and traditional verticals that are likely to be impacted by the recessionary economy,” Raju said in a statement later.
Both Maytas firms are headed by Raju’s sons - Teja Raju and Rama Raju.
Maytas Properties, run by Rama Raju, is a scale player in development of urban space infrastructure such as integrated townships, special economic zones, hospitality, retail and entertainment spaces in tier one and tier two cities across India.
The 23-year-old Maytas Infra, run by Teja Raju, is engaged in the business of infrastructure construction and asset development spanning core areas of economic growth such as highways, metro/railways, ports, transport management systems, airports, power, oil & gas, irrigation and water treatment.