Offshore and oilfield services firm Great Offshore Ltd said on Tuesday it has acquired two companies in Hyderabad for 1.6 billion rupees, marking its foray into the port terminal and offshore logistics business.
The transaction is on an all-cash basis and is expected to close within 2 months, the company said in a notice to the Bombay Stock Exchange.
“The decision to acquire an existing business is with a view to broad base earning without diversifying core business risks and ensuring sustainable cash flows,” the notice quoted Vice Chairman and Managing Director Vijay Sheth as saying.
The two companies are in the maritime services business providing offshore support, mooring operations and port management services, with a strong presence on India's eastern coast.
Their clientele include Oil & Natural Gas Corp , Reliance Industries , Bharat Petroleum Corp , Indian Oil Corp OIC.BO and Cairn India .
The companies, which have a fleet of 19 vessels, are expected to post aggregate revenues of around 1 billion rupees with a profit margin of 30 percent, the statement said.
These firms have also ordered 4 specialised vessels due for delivery in the year-ended March 2009, revenues from which would reflect in 2009/10.
Motilal Oswal Investment Advisors Ltd was the exclusive financial advisor to the transaction.
Source: Reuters