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Our Bureau

Chennai , Dec. 29

Aban Offshore Ltd has finally decided to make the mandatory open offer for Sinvest, Norway.

The company had through its subsidiary in Singapore, Aban Singapore Pte Ltd, acquired a 40 per cent stake in Sinvest, a company engaged in providing drilling services to oil companies. In addition, ICICI Bank UK and First Securities together bought 8.4 per cent.

The Norwegian authorities decided that Aban had to make a mandatory open offer to the other shareholders of Sinvest, or retain only 40 per cent stake in the company.

A few weeks ago, Aban had said that it was trying to arrange for funds for making the open offer. It had said that if it failed to arrange for funds at acceptable cost, it would divest 8.4 per cent.

The company on Friday announced that it had tied-up the funds, and, hence, it would go ahead with the open offer. It has estimated that it would require about $800 million to make the open offer.

Aban Singapore Pte will raise $150 million through an issue of convertible notes — convertible into 10.37 per cent of the company's equity. UTI Bank has agreed to provide $100 million.

Related Stories:
Aban Loyd to pick up 33.7% in Norway co for Rs 2,050 cr

More Stories on : Petroleum | Open Offers

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