Bharati to submit open offer for 20 per cent more in Great Offshore

01 June 2009

India's second largest private sector shipbuilder Bharati Shipyard Ltd. is set to acquire an additional 20-per cent stake in Great Offshore Ltd., a leading offshore oilfield services provider through an open offer in accordance with the Securities and Exchange Board of India (SEBI) regulations.

The decision was announced by the Bharati board after a meeting on Saturday following the resignation of the Great Offshore vice-chairman and managing director Vijay Sheth, the erstwhile promoter of the company.

Barely three weeks ago, Bharati acquired 14.89 per cent stake in Great Offshore at Rs315 a share for a total cost of Rs174 crore in lieu of a loan, becoming its largest shareholder. (See:Bharti Shipyard picks up 14.9 per cent stake in Great Offshore)

Bharati managing director P C Kapoor said: ''We want to consolidate our holding, and we will fund the acquisition through internal accruals.''

The takeover will be carried out thorough Natural Power Ventures, a wholly-owned subsidiary of Bharati. The company is expected to spend around Rs250 crore for the acquisition.

''The purpose of the open offer is to consolidate our investment in Great Offshore. Considering the potential of offshore services business, we have decided to increase our investment in Great Offshore. This acquisition would provide enhanced stability to the existing management in Great Offshore and maximise shareholder value for both companies,'' Kapoor told in a statement.