Satyam Computer Services, India’s fourth largest IT services provider, has proposed to acquire Maytas Properties and 51 per cent stake in Maytas Infra for a consideration of $1.6 billion (about Rs 8,000 crore).
The move by Satyam, which is sitting on a cash pile of Rs 8,235 crore, has taken the market by surprise as the IT major preferred to acquire infrastructure companies and not an IT company.
Stating that it is part of its plan to de-risk the core IT business in times of recession, Mr B. Ramalinga Raju, Chairman of Satyam, said the combined entity would help face the challenging environment and uncertainty in the market.
Satyam would acquire 100 per cent stake of promoters in Maytas Properties, a private entity, with immediate effect for $1.3 billion. With regard to Maytas Infra, Satyam would buy 31 per cent from promoters (at Rs 475 a share) and 20 per cent from the public at (Rs 525). Family relationship
The deal raised the eyebrows of analysts as both the firms are led by the sons of Mr Raju. While Maytas Properties is headed by his younger son Mr B. Rama Raju (Jr), Mr Teja Raju, the elder son, leads Maytas Infra. Of the proposed Rs 8,000-crore buyout, Rs 6,500 crore would go to Maytas Properties alone. (sources:BL)
Reverse the Word Satyam n u will get Maytas.
