NISHITH.TV
  • Mumbai
  • Silicon Valley
  • Bengaluru
  • Singapore
  • Mumbai BKC
  • New Delhi
  • New York

Locations

  • Mumbai
  • Silicon Valley
  • Bengaluru
  • Singapore
  • Mumbai BKC
  • New Delhi
  • New York
  • Content
  • Home
  • ABOUT US
  • NDA in the Media
  • Areas of Service
  • Research and Articles
  • Opportunities
  • Contact
  • NDACloud
  • Client Access
  • Member Access
  • Events and Calendar
  • How we perform
  • Knowledge anywhere, anytime
  • See our recent deals
  • Transactional insights unlocked
  • Up to date legal developments
  • Case studies in M&A

M&A Lab

HTMLPDF

December 16, 2009

Great Offshore Takeover Saga - Bharati Shipyard v/s ABG Shipyard

The age old fable of the hare and the tortoise has come true but only this time the story concludes with two winners. The hare had no choice but to run all the laps for its prize but the clever tortoise has bagged the prize even without completing the race. The hot and enthralling scuffle to acquire Great Offshore Limited (“GOL”) saw aggressive bidding by two shipyard giants, Bharati Shipyard Limited (“BSL”) and ABG Shipyard Limited (“ABG”). The climax turned out to be even more thrilling when ABG suddenly withdrew from the bidding race a day before the commencement of its open offer by selling almost its entire stake in GOL. This strategic move has been discussed, debated and criticized ever since.

After eventful six months covering open offers, competitive bids, allegations, approvals, twists, surprises and a shocking climax the scores seemed tallied to a great extent. This takeover battle is definitely one of the best episodes in the corporate history of India Inc. as it has revealed the rage and spirit of competition prevailing in the market today, and also how the entrepreneurs are preparing their arsenal to reap maximum benefits out of the booming market in the days to come. The war has also unearthed loopholes in the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (“Takeover Code”), which the recently constituted ‘takeover regulations advisory committee’ may look into.

The deal is definitely going to leave a lasting impression and the irony here is that it delivered a win-win situation for both the rival bidders. The battle between ABG and BSL was for the goose which lays golden eggs. At the fag end of the episode, we have a beaming BSL, the proud owner of the precious but viciously expensive goose, and a canny ABG carrying home a big bag full of golden eggs. Could it have been any better?

In this M&A Lab, we attempt to make a deeper probe into the bidding war between ABG and BSL for the acquisition of substantial stake in GOL and in the process analyze the commercial, legal and regulatory implications of the competitive bid including the potential issues under the Takeover Code, based on the set of facts which are in the public domain.


For a detailed analysis of the commercial, legal and regulatory considerations and to access the M&A Lab, please click here.


Nishith Desai Associates is pleased to present a detailed analysis of the latest legal developments and trends. The ‘M&A Lab’ is our initiative to provide you in-depth, incisive and a detailed research based analysis of the latest M&A deals with a view to sharing and inviting views and counter-views. We will be happy to have your views / comments on our initiative. Please read the disclaimer carefully.


– Arun Scaria, Sambhav Ranka, Sadia Ashraf, Nishchal Joshipura & Siddharth Shah 
You can direct your queries or comments to Team M&A

 

INTERESTING READ

FLÄKT (INDIA) LIMITED, FLÄKTWOODS GROUP, HAS ACQUIRED THE AIR MANAGEMENT SYSTEMS08-01-2020
FLÄKT (INDIA) LIMITED, FLÄKTWOODS GROUP, HAS ACQUIRED THE AIR MANAGEMENT SYSTEMS08-01-2020

Mission and Vision


Distinctly Different

What's New


Beyond Reasonableness: Delhi HC’s Strict Scrutiny of Post-Employment Restraints
HR Law Hotline: July 03,2025
Mid-Year FPI Wrap 2025: Developments in The Foreign Portfolio Investor Regime
Regulatory Hotline : July 01,2025

Events


Webinars

Designing Innovative Share Swap and Deferred Consideration Structures for PE and M&A Deals
July 15,2025 - July 15,2025

Seminar

Guided Meditations by Dr. Deepak Chopra
December 14,2024 - December 14,2024

This event is over. For event material please click here


Round Table

Investing In Net Zero
July 22,2022 - July 22,2022

This event is over. For event material please click here

News Roundup


News Articles

2025 Watchlist: Life Sciences Sector India
April 04,2025

Quotes

Can Indian Companies Compete with MNCs in GLP-1 Production?
July 01,2025

Newsletters


HR Law Hotline

Beyond Reasonableness: Delhi HC’s Strict Scrutiny of Post-Employment Restraints
July 03,2025

Regulatory Hotline

Mid-Year FPI Wrap 2025: Developments in The Foreign Portfolio Investor Regime
July 01,2025

Technology Law Analysis

Over the horizon technologies and legal innovation: emerging use cases for India Inc
July 01,2025

  • Disclaimer
  • Content
  • Feedback
  • Walkthrough
  • Subscribe
Nishith Desai Associates@2016 All rights reserved.