Bharati Shipyard to raise more capital to acquire Great Offshore
Monday, 05 Oct 2009
Bharati Shipyard is all set to raise its ante from INR 5,000 crore to INR 7,000 crore for the acquisition of Great Offshore, the largest integrated offshore services provider in the country.
Bharati which already has the approval to raise INR 5,000 crore through various instruments is planning to seek shareholders nod to hike the borrowing limit to INR 7,000 crore.
A company statement said that the growing financial requirements of the company necessitate an upward revision of the amount.
Bharati plans to use the additional capital to fund expansion, diversification, acquisition, general corporate restructuring and strategic investments in related areas.
Bharati is also planning to raise its shareholders’ equity by issuing convertible warrants to Promoter-Directors Mr P C Kapoor and Mr Vijay Kumar at INR 200 per share, aggregating to around INR 28 crore. This move will expand the company’s capital base by 5%, thus making it easier to raise debt in future without straining its leverage ratio.
Bharati seems to be having an upper hand in the takeover tussle with ABG Shipyard, having already acquired 22.48% in Great Offshore.
ABG, promoted by Mr Rishi Agarwal, has bought 8.29% in Great Offshore and is looking to top the last offer of INR 560 per share that was made by Bharati on September 17.
Interestingly, Great Offshore is almost four times the size of Bharati in terms of market capitalization.
