The Saudi Binladin Group of Saudi Arabia has executed a Shareholders Agreement in the august presence of Mr Talmiz Ahmad Indian Ambassador to Saudi Arabia and Mr Faisal H Frad Saudi Arabian Ambassador to India on June 19th 2010 for investing 20% in the equity share capital of Maytas Infra Limited at INR 195.30 per share leading to an investment of around INR 300 crore.

The investment will be through preferential allotment of equity shares by Maytas Infra Limited. The SBG Group and IL&FS will make an open offer to acquire an additional 20% from the market as per SEBI regulations. The induction of SBG into Maytas Infra Limited is a very positive development for the company. It also highlights a closer working relationship between India and Saudi Arabia in the area of construction and infrastructure.

The partnership of the SBG Group in Maytas Infra Limited envisages creation of a strong amalgam of technological and financial resource pools with a diversified presence across the entire infrastructure and contracting space. This will enable Maytas Infra rebuild its strengths in the EPC space through a steady flow of contracts, agglomeration of execution capacity, access to the Indian infrastructure space and servicing of large value national and international projects.

IL&FS and SBG Group have agreed to work closely and provide business support to Maytas Infra Limited over a period of time. SBG would have access to opportunities in the booming Indian infrastructure space and simultaneously leverage upon the talent pool of Maytas Infra for strengthening its international capabilities. The partnership with IL&FS will enable SBG in project development skills and financial structuring capabilities to the region.

With the induction of SBG, Maytas Infra is now well poised to systematically exploit niche segments of the EPC business. The company should be in a position to diversify its geographical and sectoral mix and introduce newer and more efficient processes and solutions to its customers. This would result in improved delivery times, cost savings and better quality of product. With these build blocks in place, Maytas Infra would be able to stage a quicker turnaround of operating and financial performance.

(Sourced from Construction Week)