Wednesday, November 5, 2008

Great Offshore acquires Andhra firms for Rs160 cr

Mumbai, Nov 5 : Great Offshore, integrated offshore service provider said that it has acquired Andhra Pradesh based companies KEI-RSOS Maritime and Rajmahendri Shipping and Oilfield Services for Rs160 crore.

“The company on 5 November, completed all procedural formalities and acquired 100% equity stake in two companies,” Great Offshore Ltd said in a filing to the Bombay Stock Exchange (BSE).

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 a strong presence on the East Coast of India.Being wholly-owned subsidiaries of Great Offshore, the companies will add to EPS accretion on a consolidated basis for this fiscal, which ends on 31 March, 2009, the company said.

In the first week of September, the company had announced that it would acquire both firms for Rs 160 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 Chairman cum Managing Director Vijay K Sheth said.

Earlier in July, KEI received a contract for providing comprehensive marine operations services for the Gangavaram Port for a period of 12 years.

In a separate filing to the BSE on 2 September, Great Offshore had announced that the existing management of both companies would continue to manage the day-to-day business.

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