The price war for control of Great Offshore is expected to heat up from December 3, when the competing offers for the company’s stake from Bharati Shipyard Ltd and ABG Shipyard Ltd open. The open offers close on December 22.
While ABG Shipyard has already intimated to the exchanges the schedule for the offer, a Bharati Shipyard official said it will inform the bourses later.
The current offer by Bharati Shipyard is of Rs 560 per share for acquiring an additional 20% stake in Great Offshore, while ABG has offered Rs 520 a share for buying 32% shares of the company from its shareholders.
Bharati now controls around 22.5% stake in the offshore company and ABG Shipyard holds 8.3%. Both Bharati Shipyard and ABG Shipyard had received the Securities and Exchange Board of India’s approval for their open offers for Great Offshore, the country’s largest integrated offshore service provider, on November 19.
However, none has taken a call yet on revising its offer price and they are likely to begin with their current tender. Analysts believe the price war may begin after December 3, when the offers open, with possibility of the offer reaching Rs 600-625 per share.
Earlier this week, Bharati Shipyard had revised its offer the second time to revert to its position taken in the original public announcement where it had said the company is looking at Great Offshore as strategic investment and not seeking management control.
The capital markets regulator had last week given clearance to the open offer of Bharati Shipyard under Section 10 of the Takeover Code as that was the first offer made.
Bharati Shipyard had revised its initial offer and made it under Section 12, which intends to acquire management control.
The country’s two largest ship manufacturing companies are fighting a pitched battle for taking over Great Offshore since June this year after Bharati Shipyard bought over the 14% stake held by the company’s erstwhile promoter Vijay Kantilal Sheth by invoking a pledge.
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