Bharati Shipyard hikes stake in Great Offshore to 22.5%

MUMBAI: Bharti Shipyard raised its stake in Great Offshore to 22.5% by picking up 3% shares from the market, inching closer to the crucial 26% figure that will give the company a clear edge over rival ABG Shipyard ahead of their competing open offers, which are expected to open this month-end.

Bharati Shipyard managing director PC Kapoor confirmed the development. The Mumbai-based ship builder acquired these shares at an average price of Rs 558.8 per share, the highest price being Rs 560. With this, the company���s offer price for Great Offshore went up to Rs 560, because if a company buys shares of the target company at a higher price during an open offer, the offer price will automatically go up to the new price.

The new offer price is 8% higher than the Rs 520 a share offer by ABG Shipyard, which currently owns 8.28% in Great Offshore. The applications for open offers of Bharati and ABG are currently pending with market regulator Sebi.
Bharati bought 11.2 lakh shares, including 2.23 lakh from Videocon Industries, for nearly Rs 63 crore. Mr Kapoor did not confirm the identity of the sellers.

The transaction consolidates Bharati���s position as its shareholding moved closer to the crucial 26% mark. Under the Indian laws, a shareholder with a 26% stake enjoys some important veto powers. Both ABG and Bharati make dry bulk carriers and offshore rigs and a controlling stake in Great Offshore will help them become integrated marine services companies offering services ranging from ship building to offshore drilling and logistics.

Bharati and ABG have been involved in a takeover battle since June this year to acquire Great Offshore. In June, ABG launched a hostile bid to acquire Great Offshore at Rs 373 per share to outbid Bharti���s offer at Rs 344. Since then, both the parties have revised their offers several times.

Great Offshore scrip closed at Rs 565 on BSE on Wednesday, up almost 5% over the previous close. ABG Shipyard closed up at Rs 265.15.