The Hindu Business Line : Vijay Sheth to buy out 14.43% stake in Great Offshore

Kolkata June 20 Mr Vijay K. Sheth, Managing Director of Great Offshore Ltd (GOL) and a co-promoter, is buying out the 14.43 per cent stake of five others in the faction led by Mr K.M. Sheth, current Chairman of GOL and Great Eastern Shipping, to take management control over the company.

Mr Vijay Seth's investment outfit — Meltar Trading & Investment Company Pvt Ltd — on Wednesday informed the stock exchanges that it proposes to acquire 55 lakh shares representing 14.43 per cent of GOL, created out of GE Shipping in 2006, from Mr Bharat K. Sheth, Mr Ravi K, Sheth, Mr K.M. Sheth and Ms Jyotsna K. Sheth.

The acquisition is to be made anytime between June 26 and June 30, and within a price range of Rs 825 and Rs 900 per share.

Shareholding

The shareholding of Meltar Trading in GOL post acquisition would be 70,81,147 shares aggregating to 18.58 per cent and Mr Vijay Sheth group's holding would increase to 24 per cent. The current holding of the K.M. Sheth faction in GOL is around 18 per cent, while Mr Vijay Sheth's group holds around 6 per cent.

The buyout price band and its link with the market price was finalised late on Tuesday night. The family members arrived at the terms after long deliberations, sources close to the deal mentioned. Interestingly, the proposed transaction time window will coincide with GOL's Q1 closure.

According to sources, Mr Vijay Sheth and his associates are also likely to exit GE Shipping by divesting their 3 per cent holding in the company to the K.M. Sheth faction. The price has also been agreed upon, sources pointed out.

Market valuation

Incidentally, two other groups of promoters of both GE Shipping and GOL are not participating in the deals and their holdings would remain unchanged in the two companies.

Last week, SEBI exempted the Vijay Sheth group from making an offer. However, Dalal Street saw an opportunity in value unlocking in both the stocks and activity also the price in the counters went up in the last two days.