GE Shipping revives demerger plan of its offshore division

Mumbai, Aug 10 (UNI) The Great Eastern Shipping Company Limited (GE Shipping) has revived a plan for the demerger of its offshore services division, saying it would apply to the courts to extend a deadline that lapsed on August 02, 2006.

It today informed the Bombay Stock Exchange, that the Board of Directors of the Company at its meeting held on August 09, 2006 has unanimously decided to apply to the Bombay High Court seeking extension of the dead-line for the effective date of the de-merger scheme, which had automatically lapsed, in terms of the High Court order, last week despite excellent cooperation from all the contracting counter parties. With regard to the legal and commercial complexities of the matter, the process of demerger could not, be completed before the automatic lapse of the deadline.

At this juncture, the company said that since the Scheme had lapsed, its Board was of the opinion that it should examine other possibilities of restructuring the Offshore services business.

The Board assessed other possibilities of restructuring the Offshore services business and unanimously concluded that having regard to all facts and circumstances, it was in the best interests of the shareholders, to seek an extension of of the time-frame from the High Court.

The board believes that it will be able to obtain the remaining approvals to complete the demerger process within the extension period. After the de-merger is effected, both the companies - GE Shipping and Great Offshore Ltd, will be headed by Mr K M Sheth as its Chairman and will have identical promoters.

Meanwhile, Greatship India Ltd (GIL) a wholly owned subsidiary of the GE Shipping took delivery of a modern midsized Platform Supply Vessel (PSV). This will be the first offshore asset owned by the company and is named ''Greatship Disha''.

With this delivery GIL has a current orderbook comprising 3 PSVs (1 Secondhand and 2 New Buildings to be delivered in H2 FY 2006-07 and Q2 and Q3 of FY 2008-09 respectively).

UNI SN WD VKG1822