Bharati Shipyard has acquired over 20% stake in Mumbai-based Great Offshore for $100 million (Rs 461 crore) through the open offer. It acquired 7.82 million shares at a price of Rs 590 per share in the open offer taking its holding to 44.26%.
As per VCCircle calculations, the average cost of acquisition of shares for Bharati Shipyard works out to around Rs 470 per share, after the open offer. Currently, First Carlyle Ventures-backed Great Offshore is trading at Rs 430/share at BSE which means Bharati is sitting on unrealised book losses of 8.5% on its investment for the offshore oilfield services company.
This comes after ABG Shipyard backed out of the takeover battle when Bharati Shipyard raised the bar in terms of valuations for acquiring controlling stake in Great Offshore.
ABG Shipyard, that sold its 8.27% stake in Great Offshore, is estimated to have pocketed Rs 47 crore in net gains from this sale. But, it has also acquired around 15.2% of Great Offshore Ltd via an open offer (made previously) which is likely to be sold out at some point in future.
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.
From an original transaction price of Rs 315/ share, Bharati scooped further shares of the company at various price points which pushed up its average cost per share.