ABG Shipyard has made a counter offer for Great Offshore at Rs 375 per share.
reported on June 1 that ABG Shipyard had intentions to acquire a significant stake in Great Offshore. Back then, it appeared difficult for a player with about 2% stake in the company to challenge a player that has about 15% stake in the company (Bharati Shipyard) but it has released its business offer in a leading business daily. ABG Shipyard says it wants to acquire a 32.1% stake in Great Offshore at a price of about Rs 335 price — this is at a discount of the current market price.
How does it affect involve the three entities: for Great Offshore, the news is positive because the asset is being seen as a premium asset by many shipyard players.
For Bharti Shipyard, life gets a bit difficult because it has already made an offer at Rs 344 per share compared to ABG Shipyard’s Rs 375.
ABG Shipyard’s CFO, on the other hand, went on record to state that the company had no intention to acquire Great Offshore.
ABG Shipyard has a debt position of about Rs 1,600 crore of which about Rs 900 crore is capex and about Rs 600 crore is working capital. So a Rs 471 crore offer definitely stretches its balance sheet, its debt to equity is about 1.85. It has indicated that it will be raising about Rs 450 crore via a QIP.
So even as ABG Shipyard looks to acquire 32.1% in Great Offshore, it remains to be seen how things pan out for Bharti Shipyard.
No comments:
Post a Comment