ABG Shipyard drops out of Great Offshore race
02 Dec 2009
ABG Shipyard has withdrawn from the race for Great Offshore, saying today that the price for the deal has turned unviable. ABG Shipyard has also sold its 8.27 per cent holding in Great Offshore.
ABG Shipyard was locked in a battle with Bharati Shipyard to acquire the drilling company. Bharati's open offer for Great Offshore launches on Thursday. Bharti Shipyard on Tuesday had revised open offer price to Rs590 per share of Great Offshore.
Bharati Shipyard is the largest shareholder in Great Offshore with a 23.3 per cent stake.
"ABG Shipyard Ltd and Eleventh Land Developers Pvt Ltd, a wholly owned subsidiary of ABG, have today announced the sale of 30,78,000 shares (approx 8.72 per cent of current paid up shareholding of Great Offshore) through a stock market sale," ABG Shipyard informed the Bombay Stock Exchange.
Consequent to this transaction, the cumulative shareholding of ABG Shipyard Ltd and Eleventh Land Developers Pvt Ltd in Great Offshore is 571 shares, ABG said.
ABG too was to have launched an open offer from tomorrow for increasing stake in the Great Offshore, but company officials were unwilling to comment.
"At Rs590 per share, Bharati would have to spend a total of Rs 461.78 crore to acquire 78,26,788 equity shares of Great Offshore, representing 20 per cent share-holding," Bharti Shipyard had said.
