GE Shipping demerger gets ONGC go-ahead

Decks for the proposed demerger of Great Eastern Shipping have been cleared with the Oil and Natural Gas Corporation (ONGC) today saying that it has no objection to the demerger of the offshore services unit into a separate company.

The spun-off business would be rechristened, Great Offshore, once the demerger is implemented.

ONGC is a major customer for the offshore services of Great Eastern Shipping and had earlier objected to the de-merger.

"We will not block the demerger plan. We are no way concerned with the proposed demerger of offshore business from GE Shipping. The pending approvals for GE Shipping will be given shortly," said a senior ONGC executive.

A senior GE Shipping executive told Business Standard the company has received certain approvals from ONGC.

GE Shipping stock today closed 10.29 per cent higher at Rs 227.70 on the Bombay Stock Exchange against yesterday's close Rs 206.45.

Earlier, the Bombay High Court had approved the scheme of arrangement between GE Shipping and Great Offshore. GE Shipping has been waiting for approval of material contract from various contracting counter parties to execute the scheme of arrangement.