ABG Shipyard (BOM: 532682) exits race for Great Offshore; sells entire 8.27% stake in Great Offshore
ABG Shipyard (BOM: 532682) exits race for Great Offshore. ABG Shipyard exits race for Great Offshore by selling entire 8.27% stake in Great Offshore. Acceptance ratio for Great Offshore open offer is at 26%.
Bharati Shipyard needs to make additional open offer for control over Great Offshore. ABG would have made Rs 50 crore gain (excluding interest cost) by selling their stake in Great Offshore. ABG’s average acquisition price was Rs 406 per share while its average selling price stood at Rs 570 per share.
The stock surged post stake sell. It is up over 12%. Bharati Shipyard, another contender for Great Offshore has also seen a surge in the stock price and is up over 11%. While the target company, Great Offshore has taken a beating and is down over 5%.
Earlier, in the morning, Bharati Shipyard once again revised its open offer for Great Offshore to Rs 590 per share from the Rs 560 earlier. The offer will open from tomorrow and will close on December 22. ABG Shipyard’s open offer for Great Offshore stood at Rs 520 per share. In the morning, 28.24 lakh shares or 7.87% equity of Great Offshore changed hands in 8 block deals. The average price was Rs 570.7 per share.
ABG Shipyard has informed BSE that ABG Shipyard and Eleventh Land Developers Pvt. Ltd. (ELDPL) (a wholly owned subsidiary of ABG), on December 02, 2009, have announced the sale of 30,78,000 shares of Great Offshore (being approximately 8.27% of current paid up shareholding of Great Offshore) through a stock market sale. Consequent to this Transaction, the cumulative shareholding of ABG and ELDPL in Great Offshore is 571 shares.
Great Offshore December Futures were trading at Rs 491.50, which is at a discount of 9.43%, with a change in open interest at 32.07%.
Sources said that ABG Shipyard can not withdraw the open offer. If the company choose to withdraw the open offer, it will need an approval from SEBI. ABG & Bharati Shipyard open offers will run together.
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