ABG Shipyard gears up to match Bharati's open offer

Ship building firm ABG Shipyard is getting ready to counter the offer price of rival Bharati Shipyard to acquire offshore drilling company Great Offshore.     

"ABG Shipyard will definitely come up with a counter offer but with the Sebi approval for its open offer expected soon, they are holding their cards close to the chest as far as the pricing is concerned," a source close to the development said.      

On September 16, Bharati Shipyard acquired 3.01 per cent stake in Great Offshore from the open market with the highest share price at Rs 560, as a result of which the open offer price for acquiring Great Offshore has been revised to Rs 560 per share.      

The transaction was carried out through its sister concern Dhanshree Properties. With the latest acquisition, Bharati Shipyard along with its group firm now holds 22.48 per cent stake in Great Offshore.     

The stock market regulator is likely to approve open offer by both ABG and Bharati to acquire Great Offshore soon.

In June this year, Bharati Shipyard had made an open offer for 20 per cent stake in Great Offshore for Rs 344 per share. This was countered by ABG Shipyard with a price of Rs 375 per share. Subsequently in July, Bharati increased the offer price to Rs 405 per share, which was again met with a counter offer from the rival at Rs 450.     

In August ABG Shipyard, which holds 8.28 per cent stake in Great Offshore, again increased the offer price to Rs 520 per share.     

ABG has recently sought shareholders' approval for raising the borrowing limit to Rs 12,000 crore from Rs 7,500 crore earlier.