ABG buys Western India Shipyard

ABG Shipyard is likely to pick up a 40% stake in Western India Shipyard for $56 million. ABG bought the shares held by institutional investors ICICI, IDBI, Bank of India, State Bank of India and UTI.

The company has a total debt of over Rs 280 crore and, during the first quarter of the current fiscal year, Western India reported a loss of Rs 2.85 crore. Western India handles composite ship and rig repair facility while ABG Shipyard is involved in shipbuilding and ship repair business. If they win the bid, ABG will get access to existing facilities of Western India as well as the order books. Western India?s clients include Reliance Industries, GE Shipping, Shipping Corporation of India and Bharati Shipyard.