SEBI spanner in Bharati, ABG plans

MUMBAI: Bharati Shipyard and ABG Shipyard's open offers for Great Offshore has run into rough weather with market regulator SEBI yet to approve the schemes. This means their open offer schedules stand cancelled and they now have to restart their programmes simultaneously. According to the original plan, Bharati's open offer ��� the first such bid ��� was to start in late July and close by mid August.

ABG's offer was suppose to start when Bharati's closed and then would have closed in September. Meanwhile, both have made a series of counter bids, with Bharati's latest offer being Rs 405 for an additional 20% stake in Great Offshore and that of ABG's at Rs 520 for a further 32.12% stake.

Now, with both awaiting SEBI nod, they will have to rework their 21-day open offer programmes. Sources say both the ship builders will have to synchronise their schedules. They point out to an earlier case in Indal, where Sterlite Industries and Alcan synchronised their open offer timetables.

Though the original schedule stands cancelled, if either Bharati or ABG buys Great Offshore shares from the market at a higher price, then that becomes the latest offer price. While Bharati and ABG are mum on plans, Great Offshore shareholders are having a ball with the company���s valuations touching new highs. From Rs 295 on May 7, the Great Offshore scrip on Thursday closed at Rs 540 on BSE. All eyes are on Bharati who will now have to make the next move.

As of now, Bharati has an edge as it holds 19.47%, but needs another 6.53% to take its holding to 26% to have a say in Great Offshore. ABG has a 7.87% stake in the company.