SKIL Infrastructure, whose open offer to shareholders of Pipavav Shipyard for an additional 20% in the latter is expected to evoke a lukewarm response, could go for a creeping acquisition in Pipavav to take its stake to 51%, analysts said.
SKIL Infrastructure’s open offer launched on Monday is priced at Rs 61.50 per share, almost 40% lower that the current market price of Pipavav Shipyard. Pipavav’s shares on Monday closed at Rs 86.40, up 0.47% on the Bombay Stock Exchange (BSE).
Public shareholders currently hold around 60.44% in Pipavav. The offer will close on June 26. “SKIL Infrastructure could slowly acquire more than 51% in Pipavav Shipyard through creeping acquisition,” said financial consultant SP Tulsiani. Creeping acquisition is a process in which the promoters of a company, who hold less than 50% of its shares, increase their stake by buying 2% of the company?s equity (the maximum permissible) each year, until they have acquired a majority stake, either by making an open offer to the shareholders, or buying from the open market.
Lancelot D’cunha, group head, Intime Spectrum Securities, said, “There is no reason as to why investors would tender their shares much lower than its market price. This is a Sebi formality where in a company which raises its stake more than 15% (or 5% in one year) in another company has to go for an open offer.? SKIL Infrastructure, which is into developing ports, shipyards, railway lines, expressways and special economic zones (SEZ), currently holds around 39.93% stake in Pipavav.