Great Offshore forays into port management, acquires 2 companies

New Delhi, Sep 2 (UNI) Great Offshore Ltd, an offshore and oilfield services firm today announced its foray into the port terminal and offshore logistics business with the acquisition of two Hyderabad-based companies for Rs 160 crore.

The company has signed definitive agreements with KEI-RSOS Maritime Ltd (KEI) and Rajamahendri Shipping&Oilfield Services Ltd (RSOS) towards this effect.

The two companies are in the maritime services business providing offshore support, mooring operations and port management services, with a strong presence on the country's eastern coast.

The transaction for 100 per cent acquisition in the firms is on an all-cash basis and is expected to close within two months.

The deal will provide Great Offshore an entry into emerging opportunities in port and terminal administration which is a derivative business arisingn of trade growth and port infrastructure development.

''The decision to acquire an existing business is with a view to broad base earning without diversifying core business risks and ensuring sustainable cash flows,'' company Vice Chairman and Managing Director Vijay Sheth said in a statement.

The two firms, having a diverse fleet of nine offshore support vessels and 10 harbour tugs, have ONGC, RIL, BPCL, Indian Oil Corporation and Cairn India as its clientele.

The companies have also ordered four specialised vessels due for delivery by the FY09-end, the statement said, adding that they are expected to post aggregate revenues of about Rs 100 crore with a profit margin of 30 per cent.

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