Bharati's new move may delay Great Offshore deal

The battle between Bharati Shipyard and ABG Shipyard for control of Great Offshore may not end any time soon as the regulatory approval from the Securities and Exchange Board of India (Sebi) for the open offer has been delayed. Sebi is seeking legal advice following the change in Bharati Shipyard���s stance regarding control over Great Offshore. Bharati Shipyard is now seeking management control contrary to its earlier stance.

Sebi is also seeking other clarifications from Bharati Shipyard & ABG Shipyard, people close to the situation told ET NOW. Bharati Shipyard filed the open offer document in May this year under regulation 10 of the Sebi takeover code, wherein the company was not looking to take control of Great Offshore.

This regulation deals with substantial acquisition of shares without a change in control. The company then changed its position and is now talking about controlling Great Offshore. Sebi officials feel that in such a case the open offer will have to be made under Regulation 12, which deals with change in control. An acquirer will also have to make more disclosures if he files under Regulation 12.

���The entire deal has to be looked at all over again as the basic premise of Bharati Shiyard���s open offer has changed,��� said a source close to the development. While Bharati holds close to 23.17% in Great Offshore, ABG Shipyard holds around 8% in the offshore drilling company. Great Offshore became a takeover target after its promoter Vijay Sheth lost control of the company in the market meltdown last year.

Bharati acquired the shares pledged by Vijay Sheth with it as he was not able to pay the required margin money. Subsequently, Bharati launched an open offer at Rs 344 a share. In June, ABG Shipyard launched a hostile bid to acquire a 32% at Rs 373 a share. Bharati responded by acquiring a block of shares and revised its bid to Rs 403 a share and then increased its bid to Rs 405 a share.

ABG too revised its offer twice to Rs 520 a share and Bharati to Rs 560 a share. The Great Offshore stock closed at 0.5% down at Rs 537.2 on Thursday.