IL&FS takes management control of Maytas Infra
Infrastructure Leasing & Financial Services (IL&FS) Ltd has taken control of Maytas Infra Ltd (MIL). IL&FS has become the new promoter of MIL in accordance with the Company Law Board (CLB) order issued on August 31, 2009. IL&FS had made a public announcement of its intention to purchase 22.51% of equity shares in MIL on September 2, 2009.
The draft letter of offer for the open offer for purchase of 11,782,620 equity shares constituting 20% of the paid up capital of MIL at Rs112.50 per share has been filed with SEBI on Septmebr 15, 2009. IL&FS has deposited the purchase consideration of Rs1,340 million in Escrow account with SBI Capital Markets as per the open offer requirements.
IL&FS has appointed four nominees on the board of directors of MIL who have replaced the four government nominee directors. The new board members are Ravi Parthasarathy (chairman IL&FS), Hari Sankaran (MD & CEO IL&FS), Arun Saha (Jt MD IL&FS) and K Ramchand (chief of operations for infrastructure IL&FS).
The appointment of the senior management team from IL&FS indicates strong committment from the IL&FS Group for the revival of MIL. This team would be supported by a well balanced management with well diversified skill sets in engineering, contracting, infrastructure, business devlopment and financial administration & controls. The board of directors has also approved an ESOP plan for the management team and employees of MIL.