It has turned out to be win-some, lose-some for ABG Shipyard in its failed bid to acquire Great Offshore. After making a neat amount by selling around 8% (that it acquired as part of the corporate takeover battle with Bharati Shipyard last year), it has now started selling the shares it acquired in its open offer at a loss.
As per the latest disclosure, ABG Shipyard has sold 2.6% of 12.2% that it still held (from the 15.2% that it acquired in the open offer) at a price of around Rs 450 a piece.
It had bought the shares at the open offer for Rs 520/share, i.e, with a haircut of 13.5% and an absolute loss of Rs 7 crore. ABG is also sitting on book losses of Rs 19 crore on its remaining holding of around 9.5%. In addition, ABG is believed to have sold some 3% stake between January-March when the Great Offshore scrip was trading at an average of Rs 450 a piece so it would have taken a loss of another Rs 8 crore.
As against this, ABG Shipyard was said to have netted as much as Rs 47 crore last December from Great Offshore. It had sold 8.27% stake after it was pipped by Bharati in the takeover battle for First Carlyle Ventures-backed Great Offshore, the country’s largest integrated offshore services firm.
Net-net ABG is still sitting on some profit from the whole transaction as of now equivalent to Rs 13 crore.
The takeover battle between ABG Shipyard and Bharati Shipyard for acquiring controlling stake in Great Offshore was diffused after Bharati raised the stakes by offering 5.3% more than its previous offer of Rs 560/share to acquire 20% additional equity in the pubic-listed company.
It was in mid-November that capital market regulator Sebi gave its green signal to the two competing open offers by rival bidders ABG Shipyard and Bharati Shipyard. Both bidders had raised their offers several times since May, when Bharati Shipyard first acquired a 14.89% stake in Great Offshore. This followed forfeiture of shares pledged by Great Offshore promoter Vijay Sheth with Bharati.