The tussle to gain control of Great Offshore by ABG Shipyard and Bharati Shipyard ends with ABG dropping out of the race
It was supposed to be a fight to the finish. But the battle to gain control of Great Offshore, the country’s largest integrated offshore services firm by the two rival bidders ABG Shipyard and Bharati Shipyard - the country’s top two shipbuilders - came to a tame end with Bharati winning hands down. A spokesman of Bharati Shipyard informed that ABG Shipyard had sold off 8.28% stake it held in Great Offshore retaining a mere 571.
Both the bidders have been seeking control of First Carlyle Ventures-backed Great Offshore. Bharati Shipyard first acquired a 14.89% stake in Great Offshore in May this year. This followed forfeiture of shares pledged by Great Offshore promoter Vijay Sheth with Bharati. This was at a transaction price of $ 6.7 (Rs315) per share. Bharati Shipyard has been slowly hiking its stake from open market and two months back it bought 3% stake taking its stake to over 22%.
The takeover battle began at the end of June when ABG launched a hostile bid to acquire 32 per cent stake in Great Offshore at $ 7.97 (Rs 375) a share, higher than Bharati’s offer to purchase 20 per cent stake at $ 7.3 (Rs 344). Bharati hiked its offer to $ 8.6 (Rs 405). ABG then raised its stake to 9 per cent and revised its offer price to $ 11 (Rs 520). Some shares were bought at a price as high as $ 11.9 (Rs 560) a piece by Bharati making it the new floor price for the open offer by Bharati.
For the two shipyards involved in the construction of a large array of specialized sophisticated vessels for diverse offshore, coastal, and the marine market sectors Great Offshore, the integrated offshore oilfield services provider is considered a value fit for their operation. The deal assures that the shipyard’s business linkages will be protected. Its order book position would come largely from the Great Offshore side.
The capital regulator, Securities and Exchange Board of India, SEBI stepping in the two parties were asked to make an open offer from today December 3 for the control of Great Offshore. The offer ends on December 22 with the last date for revising the open offer price being fixed for December 11. Now that ABG is out of the fray, Bharati’s next move will be awaited with interest.
Mr. Rajat Datta, General Manager of Great Offshore Ltd., explained, “The total equity of Great Offshore is 37,100,000. Until yesterday, ABG held 8.75% stake in the company and Bharati has 23.32%. FII hold 8%; various Mutual Funds hold 2 %, Insurance companies 8% and the remaining 50% is being held by the public.”
With regard the fleet size of the company he said, “Great Offshore fleet strength being 45 it comprises of 2 rigs, 3 construction barges, 12 harbour tugs and 28 offshore supply vessels.”