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M&M, others in race to buy ABG Shipyard; NBCC may acquire three CPSEs

13 October, 2017

With a consortium of lenders led by ICICI Bank stepping up its efforts to sell the assets of debt-laden ABG Shipyard Ltd, at least three buyers have submitted their bids ranging between Rs 3,000 crore and 3,500 crore, a financial daily reported.

The Economic Times reported, citing sources aware of the development, that Mahindra & Mahindra, Shapoorji Pallonji Group and UK-based Liberty House have evinced interest in ABG Shipyard.

According to one of the people, the bids are being “examined before discussions on specific offers and processes” take place. “It will take at least 8-12 weeks to take a final call on the bids,” the person told the daily.

ABG Shipyard was among the 12 companies identified by the Reserve Bank of India for bankruptcy proceedings under the Insolvency and Bankruptcy Code.

As of 31 March 2017, banks and financial institutions held a 49.95% stake in the company with private sector lender ICICI Bank having an 11.08% stake. The lenders now have controlling interest in the company as they have converted debt into equity under the strategic debt restructuring scheme, the report added.

Consolidation of CPSEs
State-owned construction firm NBCC (India) Ltd may acquire three other central public sector enterprises, including Engineering Projects (India) Ltd, Hindustan Prefab and Hospital Services Consultancy Corporation (India) Ltd, to create a mega construction company.

A report in The Economic Times said that the government has already invited expressions of interest for strategic sales in Hospital Services Consultancy Corporation and National Projects Construction Corporation Ltd, the report added.

NBCC (India) is a Navratna enterprise under the ministry of urban development. The company has a market capitalisation of close to Rs 22,000 crore.

The proposed consolidation of the central public sector enterprises will improve economies of scale and value of investment in the company, the report quoted a senior finance ministry official as saying.

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M&M, others in race to buy ABG Shipyard; NBCC may acquire three CPSEs

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