📈 India’s Mazagon Dock Launches Mandatory Offer for Colombo Dockyard

India’s state-controlled Mazagon Dock Shipbuilders Ltd (Mazagon) has announced a Mandatory Offer (MO) to acquire all remaining shares of Colombo Dockyard PLC at Rs. 40 per share. This follows Mazagon’s recent acquisition of a 41.73% stake (164.9 million shares) for Rs. 6.6 Bn via unsubscribed rights. • Transaction Details: The MO targets the remaining 58.27% (230.3 million shares) of the company. While the offer price is Rs. 40, the market price closed significantly higher at Rs. 152.25 yesterday. • Strategic Shift: Mazagon, an Indian "Navratna" PSU, aims to increase its holding to at least 51% through a tripartite agreement with Onomichi Dockyard Company Ltd (ODCL). This marks a major entry into the Sri Lankan marine engineering and ship repair sector. • Key Financials: • Offer Price: Rs. 40 per share. • Current Market Price: Rs. 152.25 (as of Feb 5). • Net Assets: Rs. 46.21 per share. • Major Stakeholders: Mazagon (41.73%), Senthilverl Holdings (12.2%), and ODCL. • National Impact: This acquisition by an Indian defense-linked entity strengthens bilateral ties in the maritime and logistics sector, potentially enhancing Sri Lanka’s capacity for naval vessel repair and commercial shipbuilding. The MO is unconditional, and a detailed offer document will be dispatched to shareholders within 35 days.