Maytas Infra Ltd, the ailing infrastructure firm controlled by private lender IL&FS Ltd, has proposed to issue and allot preferential shares to construction conglomerate SBG Projects Investments Ltd, a Saudi BinLadin Group (SBG) arm. While IL&FS Group holds 37.1% stake in Maytas Infra as on March 31, the new investor would hold about 20%, according to a filing by the company.

Maytas Infra, promoted by Teja Raju, son of Satyam founder B Ramalinga Raju, has been in troubled waters ever since the Satyam accounting fraud came to surface in January 2009.

The company had a board meeting on Saturday to consider a proposal to induct an investor and offer equity stake through the preferential allotment route.

In a filing with the NSE, Maytas Infra said SBG will be allotted 1,54,59,133 equity shares of the company, which is 20% of the post-issue paid-up equity share capital. The move is subject to approvals from IL&FS and other requisite regulatory bodies.

Maytas did not officially disclose the price at which the deal was struck.

SBG was founded in 1931 by Sheikh Mohammed Bin Laden, whose relationship with the country?s founder, Abdel Aziz al Saud, led to important government contracts such as refurbishing of shrines at Mecca and Medina come in its way.

Mohammed, who had 22 wives and 53 children, is also the father of Osama bin Laden. Following the allotment, SBG will become a co-promoter of the company with about 20% stake. Earlier, IL&FS had said there were proposals to partner foreign firms to revive Maytas Infra and that it would take at least two quarters to stabilise operations and revive the company before fresh capital infusion was considered. It is also learnt that the Maytas board also discussed the terms indicated by its lenders for debt restructuring. The company had received a provisional letter of approval from the CDR empowered group of lenders recently. However, there were no confirmation on this.

Maytas Infra?s operations came to a grinding halt following Ramalinga Raju?s confessions to fraud, as banks which had extended loans worth nearly Rs 2000 crore to the infrastructure firm froze all accounts.

Faced with a liquidity crunch and confidence crisis, the company lost several projects, including the prestigious Rs 12,000-crore Hyderabad Metro Rail project last year. Even a government-nominated board, which took charge of the company, could not prevent it from posting losses of over Rs 490 crore for fiscal 2008-09.