Great Offshore, Bharati Shipyard's, ABG Shipyard open offers

The twin open offer for Great Offshore closed yesterday. Bharati Shipyard's offer was successful reports CNBC-TV18’s Gautam Broker. Sources say, Bharati has received 1.02 crore shares in the open offer, which account for 27.56% of the equity. From this, Bharati will accept 20% shares on a pro-rata basis at Rs 590 per share. Bharati’s stake in Great Offshore will go up to 43% through this exercise.

Here is a verbatim transcript of Gautam Broker’s comments on CNBC-TV18 Bharati Shipyard had asked for about 78 lakh shares, the 20% of the equity, but have got about 1.2 crore shares. That’s almost 27% of equity. So almost 73% of all shares send out will be accepted in the open offer and Bharati will be shedding out somewhere close to Rs 460 crore. Their overall holding in the company now rises to 43.19%.

Interesting thing to note in this entire dealing would be how much ABG Shipyard has gained in its open offer because their open offer was about 32% and its unlikely that the whole portion would have been tendered in that open offer.

So we will have to keep an eye on what kind of stakes ABG is able to garner through the open offer and what it does to with that stake. Remember, competitor holding up even 5-6% stake in Great Offshore would make Bharati uncomfortable. Another thing to watch out for would be the possible open offer under regulation 12 for management control by Bharati. ABG said it would retain its stake if it gets less than 5% but sell the stake in case the open offer garners more than 5%.

The other bidder, ABG Shipyard, which dropped out of the race the day before the open offer opened by selling almost its entire stake, said it was not expecting to get more than 5% in the open offer.