ABG ups offer price for Great Offshore
DEAL OR NO DEAL: Action In Corporate Arena Hots Up TIMES NEWS NETWORK Mumbai: The tug of war for control of Great Offshore has intensified with India’s largest private sector ship builder, ABG Shipyard, on Tuesday, increasing its open offer price again to Rs 520 a share, 28% more than rival Bharati Shipyard’s offer for the company. At this price, Great Offshore is valued at nearly Rs 2,000 crore. Though Bharati, the second-largest private sector ship builder, is still to respond, market expects it to top ABG’s offer. It owns a little over 19% stake of Great Offshore and has couple of weeks to change its offer price of Rs 405 per share. ABG holds about 8.28% in Great Offshore, which, like Bharati, is keen to be an integrated marine services player—building ships to providing offshore drilling and logistics services to oil & gas firms. ABG has been buying Great Offshore shares through a series of block deals from the market and has increased its holding from the tiny 2.02%. ABG chairman Rishi Agarwal (related to the Ruias of Essar group) said the company had lined up loans from IL&FS to fund the transaction, besides internal resources. Great Offshore shares closed at Rs 506 on BSE on Tuesday. ABG’s latest offer comes after a slew of counter-bids by the two firms that was flagged off at Rs 344 by Bharati, two months ago, indicates Agarwal’s keenness to take control of Great Offshore. Ever since Great Offshore’s erstwhile promoter Vijay Sheth lost control after failing to pay margin calls for his pledged shares with financial institutions, the drilling firm became a takeover target. Bharati bailed out Sheth and bought over the pledged shares, equivalent to 14.89% stake at a price of Rs 315 a share. Sheth then resigned from the board. This cleared the uncertainties about the company’s management control and prompted Agarwal to mount an offer for Great Offshore. PRICE MATTERS: ABG Shipyard increased its open offer price for Great Offshore to Rs 520, 28% more than Bharati Shipyard --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
