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GE Shipping to bid for SCI alone

BS Corporate Bureau

India's largest private sector line Great Eastern Shipping Company has decided to go it alone while bidding for the government's 51 per cent stake in the Shipping Corporation of India .

At the 54th annual general meeting of the company, K M Sheth, chairman, GE Shipping, said: "We intend to go on our own while bidding for the SCI stake."

"The company has been shortlisted as a qualified interested party for participating in the bidding process in the divestment of the Shipping Corporation of India. The divestment process is in its final stages.

The board of directors will take appropriate decisions keeping in mind the overall interest of the shareholders," Sheth said earlier. Later GE Shipping managing director, Vijay Sheth said: "The decision to go it alone has been taken due to a combination of factors." He refused to elaborate further.

K M Sheth also pointed out that revenues were likely to be hit in current fiscal due to the economic downturn. "Looking ahead, the revenue outlook for both the shipping business and the offshore business seems to be weak. While the year will be a difficult one, all endeavors will be made to limit the drop in profits. The management team is continuously looking at de-risking the business model together with an emphasis on cost reduction measures, without any compromise on quality service. GE Shipping is and will continue to remain a leading marine logistics service provider to our customers both in India and abroad," he explained.

The company, which had embarked on a buyback programme last year, concluded it on Thursday with the purchase and extinguishing of 26 million equity shares at an outgo of Rs 724 million. A decision on a subsequent buyback would hinge on the success of the SCI bid.

Shareholders approved the hike in the borrowing limit of the company to Rs 35 billion from Rs 25 billion.

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