ABG Shipyard likely to finalise stake sale deal by March end: CEO
Cash-strapped ship builder ABG Shipyard will likely close the deal for a 51% stake sale by the end of this financial year, its managing director and CEO said.
By Anirban Chowdhury, ET Bureau | Updated:
MUMBAI: Cash-strapped ship builder ABG Shipyard will likely close the deal for a 51% stake sale by the end of this financial year, its managing director and CEO said Wednesday.
Syed Abdi said the company has narrowed it down to one player for the stake sale and looking to raise about Rs 500 crore for its working capital requirements. Its market capitalisation as on Thursday end was Rs 245.03 crore.
He confirmed the talks are for a strategic partnership and not with a private equity investor. SBI Capital Markets is managing the deal.
ABG Shipyard has been trying for close to one year to look for a buyer, at the behest of its 22 lenders that are restructuring its Rs 11,000 crore debt, under a corporate debt restructuring package.
The company was earlier in talks with Beirut headquartered Privinvest Holding SAL, a manufacturer of naval and commercial vessels, but the talks didn't progress, said Syed, adding talks with the German company had progressed on the basis of future orders but ABG wanted talks to progress on the basis of its current order book.
The company has a current order backlog of $2 billion (Rs 13,698 crore) he said.
Syed Abdi said the company has narrowed it down to one player for the stake sale and looking to raise about Rs 500 crore for its working capital requirements. Its market capitalisation as on Thursday end was Rs 245.03 crore.
He confirmed the talks are for a strategic partnership and not with a private equity investor. SBI Capital Markets is managing the deal.
ABG Shipyard has been trying for close to one year to look for a buyer, at the behest of its 22 lenders that are restructuring its Rs 11,000 crore debt, under a corporate debt restructuring package.
The company was earlier in talks with Beirut headquartered Privinvest Holding SAL, a manufacturer of naval and commercial vessels, but the talks didn't progress, said Syed, adding talks with the German company had progressed on the basis of future orders but ABG wanted talks to progress on the basis of its current order book.
The company has a current order backlog of $2 billion (Rs 13,698 crore) he said.
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