Great offshore buys marine services firms

September 2nd, 2008 - 4:54 pm ICT by IANS  

Mumbai, Sep 2 (IANS) Integrated offshore oilfield services provider Great Offshore Ltd Tuesday announced it has acquired in two marine services companies in Andhra Pradesh for Rs.1.6 billion, it said Tuesday.The acquisition of the Hyderabad-based Rajamahendri Shipping and Oilfield Services and KEI-RSOS Maritime will mark Great Offshore’s entry into the port terminal and offshore logistics business.

The buyout is an all-cash deal to be completed over two months, the company said in a regulatory statement to the Bombay Stock Exchange.

“The decision to acquire an existing running business is aimed at ensuring sustainable cash flows and earnings,” said Great Offshore managing director and vice chairman Vijay K. Sheth.

KEI and Rajamahendri Shipping are in the maritime services business providing offshore support, single point mooring operations, and port management services with strong presence on the eastern coastline.

The companies have a fleet of 19 vessels and are expected to post aggregate revenues of around Rs.1 billion with a profit margin of 30 percent, the statement said.

Motilal Oswal Investment Advisors was the exclusive financial advisor to the transaction.

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