Great Eastern Shipping Co Ltd, India’s largest private sector shipping firm, has been split. The board of the company — run by the Sheth family — on Wednesday approved a proposal to spin off its offshore oilfield services business into a separate company.The second generation of Sheth family — Bharat Sheth and Vijay Sheth — will manage the two companies independently. While Vijay will head offshore division, his cousin Bharat, currently the deputy chairman and MD will head the shipping division.The shipping division contributed 82 per cent of the company’s revenue of Rs 2,120 crore in the year ended March 2005, while the offshore division accounted for 17 per cent.The offshore oilfield services division offers services to oil and gas exploration and production companies, including drilling services, marine and air logistics, port and terminal services.‘‘Given the current growth momentum in the offshore oil services industry, the new company will be able to harness the potential of this business,’’ K.M. Sheth, Executive Chairman of GE Shipping, said after a board meeting, which approved the demerger.The company said the shareholding of the new company would mirror the shareholding in GE Shipping. The promoters currently hold 23.9 per cent stake in the company. Consequently, the share capital of the company is proposed to be commensurately reduced. The new company will take seven-eight months to be listed after seeking approvals from all stakeholders concerned, Bharat Sheth said.The de-merger is effective from April 1, 2005 after courts approve the scheme. Kotak Investment Banking is working out the details of the de-merger plan. The new company will also be listed.
