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Great Offshore to acquire Andhra-based firms

Great Offshore to acquire Andhra-based firms
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First Published: Tue, Sep 02 2008. 12 27 PM IST
Updated: Tue, Sep 02 2008. 12 27 PM IST
PTI
Mumbai: Great offshore said that it would acquire Andhra Pradesh-based two companies KEI-RSOS Maritime and Rajmahendri Shipping and Oilfield Services for Rs160 crore in an all cash transaction.
“The decision to acquire an existing running business is with a view to broad base earnings without diversifying core business risks and ensuring sustainable cash flows and earnings,” Great offshore Vice CMD Vijay K Sheth said in a filling to the Bombay Stock Exchange.
The acquisition would provide an entry into emerging opportunities in port and terminal administration that is a derivative business arising out of trade growth and port infrastructure development, the integrated offshore oilfield service provider said.
“Great Offshore has signed definitive agreements for the said acquisitions. The company would pay an aggregate consideration of around Rs160 crore and the transaction is expected to close within two months from the date hereof,” the company added.
KEI-RSOS Maritime and Rajmahendri Shipping and Oilfield Services are in the maritime services business providing offshore support, single point mooring operations and port management services. The companies have strong presence on the East Coast of India.
Earlier in July, KEI received a contract for providing comprehensive marine operations services for the Gangavaram Port for a period of 12 years.
For the current financial year, the companies aggregate revenue are expected to be around Rs100 crore with a PAT margin of 30%, the filing added.
The existing management of both the companies would continue to manage the day to day business.
Shares of Great Offshore were trading at Rs549.10, up 5.30% in the early morning trade on the BSE.
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First Published: Tue, Sep 02 2008. 12 27 PM IST