ABG appoints investment bank to revive business; stock jumps 16%
Russian firm has received all internal approvals for this deal.
ABG Shipyard on Wednesday said that it has appointed investment bank Rothschild to explore possibility of inducting a strategic investor. Shares of the company reacted positively and were trading up by 16% at 1433 hours on BSE Sensex.
The company, in a regulatory filing, confirmed that it is exploring the possibility of strategic investor so as to improve the company's financial and operational strength.
"For this purpose the company has appointed Rothschild investment banker. The company does not have any information which required to be disclosed to the stock exchanges as per Sebi (LODR) Regulations, 2015", the company said in the filing.
On Wednesday, Business Standard reported that the debt-ridden company is in advance talks with Russian shipbuilder for sale of controlling stake and the Russian firm has received all internal approvals for this deal.
Quoting the company's spokesperson, the report said, "The conversion of compulsorily convertible preference shares (CCPS) into equity is now complete and the lender consortium, led by ICICI Bank, has invited bidders to pick controlling stake in the company. Not just the Russian firm, even domestic shipbuilding companies have bid for controlling stake in ABG".