IT major Satyam Computer Services Ltd. announced today in its press release that its Board of Directors has approved the proposals to acquire 100% stake in Maytas Properties and 51% in Maytas Infra.

Maytas Infra, a 23-year old company, is engaged in the business of infrastructure construction and asset development encompassing core areas of India’s economic growth viz., highways, metro/railways, ports, transport management systems, airports, power, oil & gas, irrigation, water treatment, etc. The company’s track record of delivering excellence has created a niche for itself with innovative business models capturing a strategic and significant share of the action in the infrastructure space.

Maytas Properties Ltd is a scale player in development of urban space infrastructure such as master planned integrated townships, special economic zones, hospitality, retail and entertainment spaces meeting the enormous and rapidly growing need for high quality spaces in tier 1 and tier 2 cities of India. Maytas Properties is uniquely positioned in this sector to create value based on its own large and strategically located landbanks, brand and technology alliances.

Maytas Properties, along with Maytas Infra completely addresses the developmental infrastructure space which continues to be a high growth area in the current scenario.

“The two acquisitions pave the way for accelerated growth in additional geographies and market segments such as transportation, energy and several infrastructure sectors for the core IT business.” said Satyam Chairman and Founder B. Ramalinga Raju “This would 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. The established brand of Satyam can further enhance the penetration into emerging markets and within the infrastructure industry. The two companies being acquired in a challenging market offer potential for upside in future.”

The total outflow for both the acquisitions is expected to be US$ 1.6 bn comprising of US$ 1.3 bn for the 100% stake in Maytas Properties and US$ 0.3 bn for the 51% stake in Maytas Infra. The acquisition of Maytas Properties would be immediate. In the case of Maytas Infra, Satyam will acquire 31% from the promoters and make an open offer for an additional 20% from the public given that the company is a listed entity on the domestic stock exchanges. While the price proposed to be paid to promoters is Rs. 475 per share, the price for the open offer has been approved to be Rs.525 per share and is subject to change in line with SEBI regulations..

Satyam reiterates its continued thrust and emphasis in the global IT and IT enabled services. The company will continue to invest in strengthening the global partnerships with elite customers.

Mr.Raju added, “We are confident that the combined entity will deliver greater shareholder value in an otherwise challenging environment. We are also convinced that the integrated organization would be stronger and more diversified to deal with the uncertainty of the market.”

Sourced From: IPAN

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