The government-nominated board of directors of Maytas Infra met today to consider a buyout proposal for the company. The company has said that it has received a proposal to substitute the existing promoters, the Ramalinga Raju family, and take over management control. The board has forwarded this proposal to the Company Law Board for appropriate directions.
The board has said that it has held several discussions with stakeholders since the government nominees were appointed. It said that the consensus during such discussions has been for the current promoters to be replaced to restore the company’s credibility.
The current promoters own a 35% share in the company while the public owns the rest, of which financial institutions own nearly 20%, corporate investors 23% and individuals about 20%. Some of the large investors are IL&FS Financial Services, IFCI and Sicom. The stock price is up 5% as investors see some light at the end of the tunnel.
The CLB has approved the proposal forwarded by the board of directors. Subsequently, the company has announced that IL&FS Financial Services has offered to take over management control of the company. The company is one of the oldest infrastructure financing companies in the country.