Bharati will have to spend another Rs 462 crore to buy a 20% sake in Great Offshore. The company has already invested Rs 322.32 crore in acquiring 23.17% stake in Great Offshore.
Arvind Mahajan, executive director, KPMG Advisory Services, said: “Since ABG has opted out of the race to acquire Great Offshore, it is some kind of a relief for Bharati, whose stocks were deep down a while ago. The long battle with ABG is over, and to that extent, the lost share value of Bharati has come back.” He added that Bharati will be able to optimise on the synergy benefits through this acquisition.
Bharati is engaged in construction of a large array of specialised sophisticated vessels for diverse offshore, coastal and marine market sectors. Great Offshore is an integrated offshore oilfield services provider, offering a broad spectrum of services to upstream oil & gas producers to carry out offshore exploration and production activities.
Another analyst said that Bharati is constructing one oil drilling rig and a support vessel for Great Offshore, together worth around $220 million. These shipbuilding contracts could have been in trouble if ABG were to acquire Great Offshore. Also, Bharati now has the comfort of knowing that Great Offshore, one of its largest clients, will not end up being controlled by a rival company.
Param Desai, an analyst from Angel Broking, said Bharati would reap synergy benefits in the long term because of the acquisition.
Navindar M, an analyst with Natverlal and Sons Stockbrokers Pvt Ltd, said, “Bharati will not be able to reap synergy benefits so soon. Currently, Great Offshore has no leadership or a board. Also it has Rs 2,000-crore debt. Bharati will have to deal with this in the short term.
Meanwhile, shares of Great Offshore rose 0.15% to close at Rs 513.70 on the BSE. ABG’s shares also surged 3.5% to close at Rs 213.75 on the BSE.
In May this year, Bharati Shipyard bought a 14.89%...
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