Bharati hikes offer for Great Offshore to Rs 560/share

With the increase in offer price the size of the proposal now stands at Rs 438.3 crore

Bharati Shipyard today said it has hiked the open offer price to acquire stake in offshore service provider Great Offshore to Rs 560 per share.

With the increase in offer price the size of the proposal now stands at Rs 438.3 crore.

The company, which holds 22.48 per cent share in Great Offshore, had initially offered to acquire 20 per cent stake in the latter for Rs 405 per share.

Bharati Shipyard is locked in a takeover battle with rival ABG Shipyard, which has also made an open offer to buy over 32.12 per cent stake in Great Offshore at Rs 520 a share.

In a filing to the Bombay Stock Exchange (BSE), Bharati Shipyard said its revision of the open offer price followed acquisition of 3.01 per cent stake in Great Offshore by Dhanshree Properties (a sister concern of Bharati) from open market on September 16.

"Based on the highest price paid for acquiring some of the shares in set out in the foregoing, the offer price stands revised from Rs 405 to Rs 560 per equity share," it said.

Accordingly, the offer size stands revised to Rs 438.30 crore, it added.

Shares of Bharati Shipyard closed at Rs 194.95, down 3.01 per cent, while Great Offshore settled down 0.45 per cent at Rs 558 on the BSE.

Bharati added that the it intends to consolidate its shareholding in Great Offshore and provide stability to the existing management.

"The acquirer intended to consolidate the shareholding in target company (Great Offshore) and provide enhanced stability to its existing management, without any intent to gain management control of target company," the filing added.

In June, Bharati 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 for buying 32.12 per cent. In July, Bharati raised the offer price to Rs 405 a 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.