great eastern shipping demerger

8/8/2019 Great Eastern Shipping Demerger

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GREAT EASTERN SHIPPING

DEMERGER


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Demerger Definition

The act of splitting off a part of an existing

company to become a new company, whichoperates completely separate from the original

company. shareholders of the original company

are usually given an equivalent stake of ownership

in the new company.


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Demerger deal

Spin off demerger

Separating out its Offshore Business

Consisting of drilling services, marine logistics,

marine construction and port/terminal services

Resulting company as GREAT OFFSHORE LIMITED


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Spin off

GE Shipping

Limited GE ShippingLimited

Great

offshore

limited

Share holding Pattern

5 : 180% : 20%


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Company at a Glance

The Great Eastern Shipping Company Ltd. (G E Shipping)

Indias largest private sector shipping company

Experience and expertise spanning over 6 decades.

The company has two main business: shipping and offshore. The shipping business is involved intransportation of crude oil, petroleum products, gas and dry bulk commodities.

Founder: Sheths and the Bhiwandiwallas

Great Offshore limited

Great Offshore is India's prominent integrated offshore oilfield services provider offering a broadspectrum of services to upstream oil and gas producers to carry out offshore exploration and production(E&P) activities.

Offshore Drilling Services

Offshore Logistics Support Services

Engineering Services

Port and Terminal Support Services

Ship Repair Services

Inspection, Maintenance & Repair


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Corporate ProfileThe Great Eastern Shipping Co. Ltd.

Incorporated in 1948

Shipping Business Offshore Business

Crude TankersProduct Tankers

(includes LPG)

Dry bulk

Wet bulk

Offshore oil field

Support &Logistics Services

Through wholly owned

subsidiary

Greatship (India) Limited


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Share pattern of demerged company

Existing shareholders of Great eastern shipping will

be issued the shares

1 fully paid share of Rs. 10 each in Great Offshore

Limited for every 5 shares of GE Shipping

No change in the overall shareholding pattern

IndianPublic28%

Foreignholding

24%

CorporateBody

7%

Govt/Financial inst.

12%

Directors

andassociate

comp.29%

Share holding pattern


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Asset Profile

Shipping Division Fleet profile

23 Tankers: 5 Crude oil carriers17 Product carriers

1 LPG Carrier

9 Dry bulk carriers: 1 Panamax

3 Handymax3 Handysize

2 MBCOn order: 4 Tankers aggregating 0.47 mn

1 Aframax crude carrier

1 MR product carrier

2 Suezmax crude carriers

GES fleet average age 12.6 yearsWorld fleet average age:12.2 years

Indian fleet average age:16.5 years

Double hull tonnage World average 52%

Double hull tonnage GES average 47%


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Successful Indications of demerger

Market share

Industry analysis

Gross profit Net revenue

Financials

Stock market index


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Business Strategy

Entry Strategy

Shallow water supply & towage

Growth Strategy

Support to Deepwater and Construction

Special Area

Supporting deepwater activities in ECI


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Contd

Approach

Build strong understanding of markets and

customers

Acquire assets based on customer

requirements

Develop USP in service in niche markets


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Valuation

After the demerger, the paid-up share capital of

Great Offshore was Rs 38.07 crores and that of GE

Shipping was Rs 446.12 crores , against the existing

Rs 190.34 crores.

Currently the net worth of the great offshore

company is Rs1,029.51crores as compared to thedate of merger when it was 516.26 crores


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Revenues of Great Offshore

0

200

400

600

800

1000

1200

2005-06 2006-07 2007-08 2008-09 2009-10

Revenue incrores


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Share price movements in years


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Conclusion

Both the companies is doing efficiently well in terms offinancials

Acquiring of vessels and tankers

Company recent share price is low

Both the companies have successfully implement thereoperations in an effective manner

great eastern shipping demerger

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