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The open offer for additional 20 per cent stake of IL&FS Engineering and Construction Company has sailed through and shown “good response”, according to sources close to the development.
The offer was made by SBG Projects Investments, an arm of Saudi Binladin Group, and Skylight Investments (Mauritius) Ltd, Infrastructure Leasing & Financial Services Ltd and IL&FS Financial Services Ltd.
The open offer was triggered after IL&FS bought out Maytas Infra promoters' stakes. IL&FS Engineering and Construction was earlier known as Maytas Infra.
The revised open offer concluded on Monday and the details are now being compiled.
With the conclusion of the open offer, a new shareholding pattern is likely to emerge for the company.
Morgan Stanley now owns some of the Maytas Infra shares that were pledged with it. With this, Morgan Stanley's holding in the company has gone up to 5.33 per cent.
Shares of IL&FS Engineering closed Tuesday 5.66 per cent lower at Rs 178.20 against the previous close of Rs 188.9.
Recently, the promoters changed the open offer terms following a SEBI observation to revise the open offer by including interest at 10 per cent for delay in payment beyond original scheduled date of September 15, 2010.
Accordingly, interest of Rs 12.349 was calculated at 10 per cent per annum from September 15, 2010, to May 3, 2011, which is the latest scheduled date for payment of consideration.
The company had offered Rs 195.72 a share to shareholders to acquire the 20 per cent stake.
As the open offer paperwork gets done, IL&FS Engineering Services Ltd is getting ready to bag some orders in West Asia. It is looking at roads, oil and gas and power sectors to execute infrastructure projects through a joint venture.
The company has partnered with the Saudi Binladin Group.
IL&FS Engineering Services had recently won a $100-million order in Dammam, Saudi Arabia.
The Chief Executive Officer of IL&FS Engineering (formerly Maytas Infra), Mr Vimal Kaushik, said that the company will now focus on bagging new projects in West Asia.
“The venture in Middle East took longer time than we anticipated due to some regulatory clearances. However, we have made a beginning by bagging an overseas order at Dammam, and we see more such orders coming through from the venture partner,” Mr Kaushik told Business Line .
“Irrigation projects continue to be a large chunk (Rs 5,000 crore) of the company's order book of Rs 8,000 crore. These are legacy projects and will take two to three years to fully executive. However, we will aggressively bid for some of the upcoming road projects.”
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