Abg Shipyard News

UK-based global metals and engineering firm controlled by billionaire Sanjeev Gupta Liberty House Group is planning to buy-out India's debt-laden ABG Shipyard. According to a report in the Business Standard, Liberty House has proposed a new business model to the National Company Law Tribunal (NCLT) as part of its acquisition plan of ABG Shipyard. The plan includes a ship breaking facility, along with the existing shipbuilding and repair space. The newspaper report quoted sources saying that the negotiations are on. There will be more clarity on the deal soon. ABG Shipyard is one of the 12 firms on the Reserve Bank of India (RBI)’s list to be forced into bankruptcy under a new regulation for failing to repay their debts.

The Indian ministry of defence (MoD) has terminated the contracts with India's ABG Shipyard, which already  was out of the race for $2.6-billion four Landing Platforms Docks (LPD). This comes as another serious setback to the Shipyard after it was listed as non-performing asset (NPA) accounts by the Reserve Bank of India (RBI) for fast resolution under the insolvency law. ABG Shipyard has failed the corporate debt restructuring (CDR) carried out by ICICI bank. The Financial Express reported that keeping in mind the poor financial health of the shipyard, the MoD has written to ABG  that their old contracts are terminated. “The MoD through a letter to ABG Shipyard has cancelled contracts including Cadet Training ship; Coast Guard Training Ship and Naval vessels.

India's state-owned Cochin Shipyard Ltd (CSL) has started preliminary discussions to buy a controlling stake in debt-ridden ABG Shipyard Ltd, Livemint reported quoting un-named sources close to the development. Earlier, three suitors - Reliance Defence, Shapoorji Pallonji Group and the UK’s Liberty House - have shown interest in buying ABG, even as its lenders try to force the ship maker out of a debt recast mechanism and recover their dues. However, sources say that they have backed out one by one. Now that Shapoorji Pallonji and Co. Ltd has decided to back out of the discussion, CSL entered the fray. ABG Shipyard’s lenders have been in talks with several strategic investors for a while. A controlling stake in ABG may be valued at Rs400-500 crore, the second of the two people said.

ABG Shipyard Ltd, which was one of the largest shipbuilding company in the country operating in the private domain, has decided to divest its entire stake in its subsidiary Western India Shipyard Ltd (WIS). The company’s board has agreed to invite suitable bid from the prospective investor and negotiate the deal including best price,  it said in a filing with stock exchanges. "Board of Directors of the company, in their meeting held today, i.E. October 6, 2016 have decided and approved, inter alia, divestment of its subsidiary Western India Shipyard Ltd and authorised Executive Director and other company officials, jointly to invite suitable bid from the prospective investors and negotiate the deal including the best price, terms and conditions with them," it said in a regulatory filing.

Largest Private Sector Shipbuilding Yard in India ABG Shipyard is for sale. The Lenders led by State Bank of India has hired investment bank Rothschild to find a buyer for a majority stake in the company as they struggle to save Rs 16,000 crore ($2.4 billion) worth of loans given to it, reports Economoc Times. Lenders have to complete this exercise -converting debt into equity -within 210 days and find a new buyer within 18 months, according to Reserve Bank of India norms. Earlier, Global commodities platform SIMEC Group bought a 51% stake in ABG Cement for Rs525 crore and initiated a management change in the company earlier this financial year. Meanwhile, Lenders to ABG Shipyard have converted a significant portion of their debt into equity and now own 49.15% in the company.

The cash-strapped Indian shipbuilder ABG Shipyard will likely close the deal for a 51 per cent stake sale by the end of this financial year, its managing director and CEO Syed Abdi said. Syed said the company had narrowed it down to one player for the stake sale and was looking to raise about Rs 500 crore for its working capital requirements. ABG Shipyard Ltd was in talks with a clutch of domestic and international investors for selling as much as 51% in the country’s largest shipbuilder. India’s largest private shipbuilder is in the midst of a corporate debt restructuring (CDR) exercise under which the creditors led by State Bank of India agreed last year to recast Rs.11…

India's largest private shipbuilding company ABG Shipyard is in talks with Privinvest Holding SAL to sell stake. A report says that Privinvest is expected to acquire up to 49% stake in ABG. A report in the ET NOW says both the companies entered into an exclusivity period for the transaction on May 29. Privinvest may get 3 board seats and new management to ABG Shipyard post the deal, says report. Privinvest Holding which has shipbuilding operations across the world is interested in picking majority stake in ABG Shipyard not only to have a presence in India but to also gain from its defence licence to build warships. This will be a much needed lifeline as ABG has been struggling to stay afloat a year after its Rs 11…

Last month Maritime Reporter spent some time with Vivek Seth, CEO, of Qatar-based Halul Offshore  Services Company, for his insights on the impact of low oil prices in the Middle East and beyond. What is your background? I became part of the Milaha family when I joined Halul Offshore in February 2014 as CEO. I am a second generation Marine Engineer. After sailing as a C/E I took my first shore job as Technical superintendent in Hong Kong for more than two years. Subsequently, I got my Masters in Business Administration from UK.

ABG Shipyard Ltd has tied up with Gaztransport and Technigaz (GTT) of France for the maritime transportation and storage of liquefied natural gas (LNG), reports Livemint. With this pact, ABG has become the third Indian company to secure technology collaboration to build LNG carriers. The Shipyard is preparing for a tender set to be issued by GAIL (India) Ltd for hiring nine new LNG ships that will haul gas from the US from December 2017. “We have signed an agreement with GTT for technology transfer for building LNG ships,” a spokesman for ABG Shipyard said. GTT, one of the world’s top designers of containment systems, which does not own a yard…

ABG Shipyard Ltd has clarified with reference to the news item appearing in the Media on March10, 2015 titled "L&T in race to buy ABG Shipyard stake". The Bombay Stock Exchange had sought clarification from ABG Shipyard Ltd with respect to news published in ET Now that said either L&T is taking ABG Shipyard over or there is a strategic investment being made by L&T into the company. In a notification to the stock exchanges, the company confirmed that no such negotiations were taking place and the company is not aware of any information that has to be announced to the Exchanges which could explain the aforesaid movement in the trading and that which is required to be disclosed to the stock exchanges as per Clause 36 of the Listing Agreement.

Indian shipbuilders buoyed by a renewed political will, a plan and funding to help the industry recover. It has been a long wait for the 28 shipbuilders in India to finally catch sight of  opportunities to sail back into the better financial waters. The newly elected Narendra Modi’s BJP’s party brought in a strong stable government, the first in nearly 30 years, and has given an unprecedented, massive boost in promoting Indian shipping in its recent Union Budget. Most industry stakeholders consider this to be a very positive and unexpected turn of events, as the previous succession of governments that have been largely unsupportive of all matters maritime, despite the industry crying itself hoarse for a level playing field to enable it to face cut-throat overseas competition.

Murray Fenton India, the Technical Services division of Bibby Ship Management (India) Pvt. Ltd, has been appointed by a consortium of banks as “Lenders Independent Engineers” for the ABG Shipyard Project. This project will require the Murray Fenton India team to monitor the construction of vessels, ship lift projects and expenditure at the ABG shipyards - Magdalla and Dahej - as well as oversee financial disbursements to the yard. Bibby Ship Management has mobilized a team of experts, including naval architects, ship yard specialists and procurement personnel to work on the contract. Capt.

At less than 10 years old, Nor Crane is a relatively new name in deck machinery. While short on years, it is long on experience, with an impressive order book, too. Nor Crane is not unlike a number of other Norwegian technology companies in that it has a history strongly rooted in the country’s offshore and fishing fleets, espouses the mandate of quality over costs, and is truly global in its scope and reach. Nor Crane was established in 2004 by Finn M. Nilsen, Managing Director, as an engineering company from pulling and lifting technology for the marine and offshore support industry.

The enthusiasm, dedication and passion for ship building have helped ABG Shipyard Ltd remain in the forefront. Speaking to Maritime Reporter & Engineering News, Major Arun Phatak (right) points out that it is more important to be a responsible shipbuilder demonstrating with solid results rather than empty talk. Unruffled by the slump in shipping freight rates, ABG Shipyard Ltd., the largest private shipbuilder in the country, has persisted on a high-growth trajectory. With a record delivery of 158 specialized and sophisticated vessels to date, the versatility of the shipyard and expertise to build a complex and wide range of vessels speaks volumes about ABG’s potential and vibrant track record.

Shipping Corporation of India Ltd (SCI) has signed ashipbuilding contract for acquisition of six 80 Ton Bollard Pull Anchor Handling, Towing and Supply Vessels (AHTSVs), with M/s. ABG Shipyard Ltd,. according to a report on http://www.equitybulls.com.

According to a report from Moneycontrol.com, Justtrade.in is bullish on ABG Shipyard and has recommended buy rating on the stock with a target of Rs 445 in its June 28, 2011 research report.   Source: Moneycontrol.com

According to a report from ThisDay, the management of an Indian firm, ABG Shipyard, has began talks with the Indian government with a view to setting up a shipbuilding yard in the country.   (Source: ThisDay)

According to a report from defenseWeb.com, ABG Shipyard is in talks with the Nigerian government and private equity investors to build a shipyard in Nigeria through a joint venture in which the Indian company will hold a 40 percent stake.   (Source: defenceweb.com)

Ship Equip announced a contract with Varada Marine to install its SEVSAT (Ship Equip VSAT) maritime broadband solution on the company’s entire fleet of Offshore Supply Vessels. Varada Marine, a company with its head office in Kristiansand, Norway, has announced an extensive new building program at ABG Shipyard Ltd in India. Deliveries of SEVSAT systems will commence in step with the new building program, with the first system already delivered to the yard.

According to a Jan 17 report from Business Daily from The Hindu group of publications, valuations of the ABG Shipyard stock have moved up sooner than expected, owing to the rally it witnessed in the last six months on pick-up in orders and expectations of restoration in capital subsidy. (Source: Business Daily from The Hindu group of publications)

Shipbuilding companies ABG Shipyard Ltd and Bharati Shipyard Ltd missed Street estimates for the June quarter. ABG's net profit fell by 20% from the year-ago period to '38.41 crore, while that of Bharati fell 41% to '22.12 crore. ABG's net performance was hit by higher depreciation costs and an exceptional item worth '13.75 crore relating to a one-time loss booked on sale of shares in Great Offshore Ltd. ABG's depreciation costs increased to '13.66 crore from '4.53 crore last year on account of part capitalization of the project at its Dahej shipyard. Bharati's performance at the net level was hit mainly on account of 127% increase in interest costs to '54.68 crore. Revenue and operating profit margins at both firms increased.

According to an April 11 report from the Times of India, ABG shipyard's hi-tech Maritime Institute at Ichhapore is set to be ready by the end of this year. (Source: Times of India)

The ministry of shipping is considering reviving subsidy on shipbuilding to enable the industry to be globally competitive. Currently, ’s share of global shipbuilding orders stands a minuscule 1percent. The subsidy scheme had expired on August 14, 2007. T R Baalu, Union minister of shipping, road transport and highways, said the ministry is thinking of circulating a cabinet note on subsidy this week. The previous subsidy scheme provided a 30% incentive on the contract value of ocean-going merchant vessels more than 80 metres in length sold to Indian companies, and on all ships sold to foreign firms. A report by audit and consultancy KPMG on shipbuilding subsidies across the globe last year showed that Indian yards suffer a minimum cost disadvantage of 32-37% on the price of a typical ship.