Monday, March 16, 2009
Heard on the Street- Greatship may sell up to 25% to strategic investor
Monday, 16 March 2009
Greatship (India), a wholly-owned subsidiary of the Great Eastern Shipping (GE Shipping), is said to be looking to dilute 20-25% of its stake in favour of a strategic investor. According to market talk, some foreign private equity players are in fray, with “Kaala Pathar” clearly in the lead for now. To an email query on the issue, GIL responded saying “no comment please”. What is noteworthy is that the company has been valued close to $150 million, almost the same as its parent company. Analysts maintain the valuation factors in GIL’s assets, its future contracts, etc.
However, fence-sitters believe, given the current market conditions and the fact that oil prices have plummeted, valuations could come under pressure. GIL currently owns and operates five platform-supply vessels, two in India with ONGC and GSPC, two in the North Sea, and one in Mexico.
GIL also owns and operates two Anchor Handling Tug Supply Vessels (AHTSVs), one in South Africa, and one in the Middle East. GIL and its subsidiaries also have an order book of seventeen vessels and one rig under construction — one AHTSV in Sri Lanka, four AHTSVs in Batam, four MPSVs in Singapore, two MSVs in India, four ROVSVs in Sri Lanka, two 150 TBP AHTSVs in Batam, and a premium 350 jack-up rig in Singapore. GE Shipping shares ended 6.5% higher at Rs 163.10 on Friday.
Source: Economic Times India
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