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Germany’s Privinvest may buy strategic stake in ABG Shipyard

Germany-based Privinvest Holding is in discussions to buy a strategic stake in Mumbai-based ABG Shipyard Ltd, a company which provides ship-building and ship repair services, according to a stock market disclosure.

The company said it has received Privinvest's expression of interest for the acquisition.

Earlier, in April, ABG Shipyard announced that it is exploring the possibility of bringing in investors to improve its financial and operational strength and the talks are at a preliminary stage.

Privinvest is major player in naval, commercial vessels and super yacht industry. It owns shipyards like Nobiskrug Gmbh, Germany; Hellenic Shipyards SA, Greece; CMN, France; ADM Kiel Shipyards, Germany and Logistics International Sal Adm Shipyards, UAE.

ABG Shipyard, a leading private sector shipbuilding yard, manufactures crafts, floating cranes articouple tugs, flotilla, split barges, bulk carriers, newsprint carriers, offshore supply vessels, positioning ships, anchor handling tug supply vessels and jack-up drilling rigs. It was incorporated in 1985 and was formerly known as Magdalla Shipyard Pvt Ltd.

Currently, the firm has a total order book of Rs 12,000 crore, of which defence orders are worth Rs 1,500 crore and the rest is commercial.

Shares of ABG Shipyard closed at Rs 180.90 each, up 8.16 per cent on BSE in a flat Mumbai market on Friday.

The company has a market cap of Rs 974 crore with its promoters owning 58.67 per cent stake, almost all pledged with financial institutions. They also hold a significant equity convertible securities, though.

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