Privatisation Of Shipping Corporation: 5 Companies, Including GE Shipping, Vedanta, In Race To Acquire Govt’s Stake

Great Eastern (GE) Shipping, a consortium comprising Prem Watsa’s Fairfax , UAE’s Safe Seas and Anil Agarwal’s Vedanta group are among the companies in the race to acquire the government’s 63.75% stake in Shipping Corporation of India (SCI) to a private investor, reports Times of India.

A consortium led by Foresight Group, comprising Belgium listed shipping company Exmar and Dubai-based shipping company GMS DMCC, is also reportedly in the reckoning.

On December 22, the Union government invited bids to sell its 63.75% stake in Shipping Corporation of India (SCI) to a private investor. The deadline for submitting initial bids was February 13.

In November 2019, the Union Cabinet had accorded ''in-principle'' approval for strategic disinvestment of Government of India's shareholding of 63.75 per cent in SCI along with transfer of management control to a strategic buyer.

The Union government's DIPAM appointed RBSA Advisors as the transaction advisor for the privatisation of SCI.

In November 2020, the company’s board sought bids for a consultant to undertake de-merger/disposal of its non-core assets (real estate) ahead of its stake-sale and to carry out corporate restructuring for better operational performance.

SCI is largest Indian shipping company with a fleet strength of 59 vessels at present. It runs a fleet of 59 ships, including crude oil tankers, very large crude carriers, petroleum product carriers, liquefied petroleum gas carriers, bulk carriers, container ships and off-shore support vessels.

SCI owns and operates around one-third of the Indian tonnage, and has operating interests in practically all areas of the shipping business; servicing both national and international trades.