Shipping Corp. of India Will Not Be Restructured

Tuesday, March 06, 2001
The Indian government will not follow the advice of PricewaterhouseCoopers and break up the state-run Shipping Corp of India (SCI) into three units ahead of its privatization, Reuters reported. The Business Line, without citing sources, said after discussion between the SCI management, the Ministry of Shipping and PricewaterhouseCoopers, “the government has finally decided to go ahead with the disinvestment plan without undertaking a restructuring of the company.” The report said PricewaterhouseCoopers had recommended splitting the company into three entities with each in “command of vessels of a particular shipping segment.” It cited two major reason why the government had decided not to do so. “For one, it will take time and we have to complete the divestment in SCI before the shipping cycle, which is currently on a historic high, dips so as to maximize the proceeds from the sale.” Secondly, the government believed the benefits from restructuring were not substantial, and in fact could have a negative impact on the price received. “The overwhelming view was that it (the PricewaterhouseCoopers restructuring) would create unviable units, which would impact on the valuation of SCI for determining the reserve price,” the report quoted an unnamed source as saying. Currently, the government owns 80 percent of SCI. The other 20 percent is owned by banks, other financial institutions, mutual funds and private investors. The Disinvestment Commission had recommended selling a 40 percent stake to major domestic oil companies. But the poor response received to that proposal prompted the government to instead think of selling a major stake to a strategic partner. - (Reuters)
Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

U.S. DoI Upholds 2008 Shell Arctic Lease

The U.S. Interior Department on Tuesday upheld a 2008 lease sale in the Chukchi Sea off Alaska, moving Royal Dutch Shell a step closer to returning to oil and gas

All American Marine Delivers Ferry to Seattle

All American Marine, Inc. (AAM) today announced the delivery of a new passenger ferry that will serve the city of Seattle.    The vessel, MV Sally Fox, was dedicated

Baltic Sea Freight Index Up on Higher Capesize Rates

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Tuesday, mostly on higher capesize rates.   The index,

Finance

Hermes Unit, Canadian Fund to Buy $2.4B Stake in UK Ports Group

The Canada Pension Plan Investment Board (CPPIB) and Hermes Infrastructure are prepared to buy a 30 percent stake in Associated British Ports for about 1.6 billion pounds ($2.

Baltic Sea Freight Index Up on Higher Capesize Rates

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Tuesday, mostly on higher capesize rates.   The index,

Direct Le Havre to Charleston LCL Import Service

CaroTrans has announced the addition of an expedited Le Havre, France to Charleston LCL import service.    This is the only direct, weekly Le Havre to Charleston LCL service available in the market.

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0974 sec (10 req/sec)