Bharati raises Great Offshore offer price to Rs403 per share
24 Jun 2009
The battle for Great Offshore has taken a new twist with Bharati Shipyard managing director P C Kapoor hinting of a willingness to hike the offer for the rig builder
Rival ABG Shipyard said earlier in the day that it made an open offer to buy over 32 per cent in Great Offshore at Rs375 a share, in response to Bharati's open offer at Rs344 a share. (See: Bharti Shipyard, ABG continue battle for Great Offshore stake).
Kapoor said his company had bought 4.58 per cent stake at Rs403 a share from Ravi Sheth, a cousin of the former founder-promoter of Great Offshore, Vijay Sheth, through block deals on Tuesday.
This implies that Bharati is ready to increase its offer price by upto Rs403 per share of Great Offshore.
Under the Securities and Exchange Board of India (SEBI) rules, an open offer price is automatically revised upwards, if an acquirer buys a single share at a higher rate during the tenure of the offer. As a consequence, Bharati's new offer stands at Rs403 a share, said Kapoor.
Bharati has about 15 per cent stake in Great Offshore. With this new purchase it now has about 19.5 per cent stake in Great Offshore for about Rs250 crore.
About five months ago, Great Offshore vice chairman and managing director Vijay Sheth pledged a 14.89-per cent stake with two Bharati Shipyard group companies for a Rs200 crore loan to repay creditors. Eventually, in May Bharati picked up 14.89 per cent stake in Great Offshore at Rs315 per share. (See: Bharti Shipyard picks up 14.9 per cent stake in Great Offshore).
Kapoor said, "We have raised our equity share holding as we feel it is a strategic long term investment and the recent development endorses how strategic our investment is.''
On the other hand, ABG Shipyard holds a tiny 2.02 peer cent in Great Offshore and has made an open offer on Tuesday for 32.12 per cent stake of Great Offshore.
ABG Shipyard chairman Rishi Agarwal said the company decided to make an offer as the uncertainties about the management of Great offshore is now cleared with the resignation of its previous promoter, Vijay Sheth.
ABG Shipyard shares opened at Rs216.90 on the Bombay Stock Exchange, up 1.69 per cent from its Tuesday's close of Rs213.15. Bharati shares opened at Rs164.60, up 2.34 per cent from its Tuesday's close of Rs162.50.
