Mumbai: ABG Shipyard Ltd expects to hold about 51% stake in Western India Shipyard Ltd after the conclusion of a revival plan, a senior official said on 13 September.
ABG Shipyard will infuse Rs250 million in cash immediately and help Goa-based Western India raise Rs1.2 billion in debt, chief financial officer D. Datar said.
“It makes a lot of synergies and good sense to have such a facility on the west coast”, Datar said. The proposal, subject to approvals, includes options for restructuring of the share capital of Western India and one-time settlement of debt.
There will be no open offer for Western India Shipyard shareholders since the takeover follows a court directive, he said. Shares in Western India Shipyard opened up 5% at Rs18.90 hitting its maximum daily limit.
Western India Shipyard owns the largest ship repairing facility on the west coast. It has a debt of Rs2.5 billion, to be reduced to Rs1.2 billion under the plan after write-offs, Datar said. ABG Shipyard’s shares were up 3.5% to Rs620 in a firm Mumbai market.