| Log in
Photo Credit: Thinkstock

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.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
Warburg Pincus to exit Avtec; Liberty House to bid for ABG Shipyard again

Warburg Pincus to exit Avtec; Liberty House to bid for ABG Shipyard again

Keshav Sunkara 2 months ago
CK Birla Group will buy the 30% stake held by private equity firm Warburg Pincus...
Debt laden ABG Shipyard to sell Western India Shipyard

Debt laden ABG Shipyard to sell Western India Shipyard

PTI 2 years ago
ABG Shipyard has decided to divest its subsidiary Western India Shipyard Ltd and...
Exclusive: StanChart files criminal complaint against ABG Shipyard, promoter Rishi Agarwal

Exclusive: StanChart files criminal complaint against ABG Shipyard, promoter Rishi Agarwal

Maulik Vyas 2 years ago
Standard Chartered Bank (SCB) has filed a criminal complaint with Economic...
No Comments

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

Powered by WordPress.com VIP