ABG to buy WISL

Mumbai-based ABG Shipyard is all set to take over Western India Shipyard (WISL) in a $48 million deal to be announced in a few weeks.

ABG will get management control of WISL and the 40% stake held by financial institutions led by ICICI Bank. Sources said the deal will not be followed by an open offer as it is a court-initiated sale. ICICI Bank, which has been coordinating the sale on behalf of lenders for over a year, is believed to have sorted out most of the pending issues with the highest bidder – ABG Shipyard. A host of court cases and various issues related to conversion of debt into equity and other concessions, which lenders were seeking from bidders, had delayed the sale of the company, said sources.

ABG was in the race along with three other bidders – Bharati Shipyard, L&T and the Dempo group. WISL owns and operates two ship-repairing yards in Goa. It is also looking at building small-sized ships and niche vessels at its yards.

ABG Shipyard has also submitted a price bid for Alcock Ashdown (Gujarat), a ship-building company owned by the Gujarat government. The government invited bids to sell 100% stake in the ship-building firm, which has two shipyards, i.e. Bhavnagar and Chanch.

As the global ship-building and repair market is facing a demand boom, India has seen a consolidation wave among the existing players. In May, ABG Shipyard had taken over Vipul Shipyard in Gujarat for an undisclosed amount.