Mahindra & Mahindra (M&M), Shapoorji Pallonji Group and Liberty House of the UK are competing to acquire debt-laden ABG Shipyard.
This is done as a consortium of lenders led by ICICI Bank increased efforts to sell the company to recover money.
All three have separately bid for the assets with offers ranging between Rs 3,000 crore and Rs 3,500 crore, under which the lenders will have to take a haircut of around 70% on the total outstanding debt of the company, sources with direct knowledge of the matter told ET.
ABG has a total outstanding debt of around Rs 16,400 crore to 22 lenders and the company is among the 12 firms identified by RBI and referred to the National Company Law Tribunal (NCLT) bankruptcy proceedings under the Insolvency and Bankruptcy Code.
“The bids have come and we need to examine and sit with each of them about the specific offers and the processes. It will take at least 8-12 weeks to take a final call on the bids,” said one of the sources.
Shapoorji Pallonji Group has strong business interest in shipping business. Last year, it agreed to buy a 51% stake in Odisha’s Gopalpur port, while it signed a definitive agreement in 2016 to acquire Karaikkal port in Tamil Nadu from Marg Constructions and its private equity investors, including Jacob Ballas and Standard Chartered Private Equity.
With inputs from: The Economic Times
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