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| Bharati Shipyard acquires 14.9% stake in Great Offshore |
| BS Reporter / Mumbai May 08, 2009, 00:52 IST |
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Bharati Shipyard, India’s second-largest private sector shipbuilder, today said it had acquired a 14.89 per cent stake in Great Offshore.
The company paid Rs 315 each for the 5.53 million shares in a deal worth Rs 174 crore. Last year, Great Offshore’s Founder and Managing Director Vijay Sheth had pledged the shares with Bharati Shipyard for a loan of around Rs 200 crore.
The shares were acquired at a 6.62 per cent premium to Great Offshore’s closing price on the Bombay Stock Exchange (BSE).
Great Offshore shares gained 2.06 per cent to close at Rs 295.45, while Bharati Shipyard shares rose 9.99 per cent to close at Rs 96.35 on the BSE. The deal was disclosed after market hours.
“We have decided to acquire the pledged shares and hold it as a strategic long-term investment,” Bharati Shipyard Managing Director P C Kapoor said in a statement.
Bharati Shipyard’s two group companies — Natural Power Ventures and Dhanshree Properties — have acquired the stake, which was pledged with two other two units of the company, Advitiya Urja and Vishudh Urja.
“The investment would generate long-term benefits for the company and add strength to the company's position in the international market,” said Kapoor.
Great Offshore provides offshore and oilfield services, while Bharati Shipyard is in the business of making offshore vessels and rigs.
Bharati Shipyard has about $230 million worth of orders from Great Offshore for a rig due for delivery in May next year and a multipurpose supply vessel to be delivered in September.
“There are a number of synergies between the two companies. A strategic investment into Great Offshore will enhance value for stakeholders of both the companies,” said Vijay Kumar, managing director, Bharti Shipyard.
Great Offshore's diversified fleet and strong financial performance makes it a “highly valuable investment proposition for Bharati,” Kumar added.
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