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SCI’s minority stake buy in shipbuilder to take time: Chairman

SCI’s minority stake buy in shipbuilder to take time: Chairman
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First Published: Wed, Sep 07 2011. 01 31 PM IST
Updated: Wed, Sep 07 2011. 01 31 PM IST
New Delhi: State-run Shipping Corp of India is in the process of conducting due diligence to buy a 10-15% stake in an Indian shipbuilder, but the process could take time, its chairman said on Wednesday.
“We are still doing due diligence, but when the core business is not doing that well, it is that much more difficult to finalise, it may take some time,” S Hajara said on the sidelines of a conference.
The company is talking to almost all the major shipbuilders in India including ABG Shipyard, Bharati Shipyard and Pipavav Shipyard.
The firm, India’s largest shipping company, has reported a net loss for two consecutive quarters hurt by a slowdown in the sector which hit freight rates.
Hajara said industry freight rates are expected to remain under pressure for at least one more year due to excess capacity.
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First Published: Wed, Sep 07 2011. 01 31 PM IST