According to a release issued by the company to the BSE today, the restructuring involves the de-merger of the offshore business consisting of drilling services, marine logistics, marine construction and port/terminal services, into a separate new company with effect from April 1, 2005.
"It is proposed that the shares of the new company will be allotted proportionately to shareholders of the company in accordance with a scheme of arrangement to be formulated. The shareholding of the new company will mirror the shareholding in the company," the release added.
K M Sheth, executive chairman of GE Shipping, said: "Given the current growth momentum in the offshore oil services industry, the new company will be able to harness the potential of this business. The de-merger will create two focused companies- one in shipping and the other in oilfield services - thereby helping to unlock value for shareholders."
The company is being advised by Kotak Investment Banking, the release added.
