ICICI Bank acquires 11.08 per cent stake in ABG Shipyard

ICICI Bank has acquired an 11.08 per cent equity stake in ABG Shipyard Limited by exercising its option of converting compulsorily convertible preference shares into equity. The lenders now have a 49 per cent stake in the shipyard. After the shipyard failed to repay its dues and infuse capital into the company, the lenders appointed investment banker Rothschild and Company to find a buyer to sell their stake. Other lenders are SBI and Punjab National Bank with 7 per cent each and Andhra Bank, the Bank of Baroda, LIC and Syndicate Bank with a combined stake of  8 per cent in the company. ABG has an outstanding loan of Rs 164 billion.