Aban Offshore

STOCK IN THE NEWS

Aban Offshore flared up 5.85 per cent on Friday to close at Rs 1382.65 after the company announced $800 million (nearly Rs 3,600 crore) mandatory open offer for shareholders of the Norwegian drilling company Sinvest Sinvest ASA.

The open offer came after the Oslo Stock Exchange asked Aban to acquire the remaining shares in the company following its acquisition of over 40 per cent stake in Sinvest.

Chennai-based Aban had picked up less than 40 per cent in Sinvest for around $530 million (nearly Rs 2,400 crore) six months ago but subsequently scaled up its stake a little over 40 per cent.

Earlier Oslo Stock Exchange had rejected the appeal filed by Aban Singapore Pte. - a wholly owned subsidiary of Aban Offshore - for waiver of the mandatory open offer for the equity shares of Sinvest - a Norwegian company in the business of offshore drilling rigs.

Aban Singapore holds 39.99 per cent stake in the company directly and had entered into total return swaps contracts with ICICI UK and First Securities ASA for a further 8.42 per cent shares. The Oslo exchange concluded that Aban and other parties were acting in concert.

"� BS Research