A Foresight Group-led bid for Shipping Corp of India (SCI) has been hit by the defection of Belgian partner Exmar.
The gas vessel specialist has confirmed it is no longer part of the group aiming to take over the state shipowner in its privatisation process.
Ravi Mehrotra-led Foresight had teamed up with cash buyer GMS and Exmar to acquire the 63.75% stake held by the Indian government.
"It is correct that we have put our part of the consortium for the possible purchase of SCI on hold," Jens Ismar, executive director of shipping at Exmar, told the Economic Times.
"We feel this project could be an interesting business proposition with an interesting potential especially on the gas side. We have though, due to other priorities, decided to leave this for the time being," he added.
Foresight has been contacted for comment.
Mehrotra has previously said he wants to expand the LNG shipping operations of SCI.
Foresight would fund the acquisition with money from a family trust and consortium partners while looking for strategic investors including private equity funds, the group has confirmed.
Two rival bidders
The group is up against two other approved bidders for SCI, domestic conglomerate Megha Engineering & Infrastructure and US tanker owner Safesea Group.
SCI's shares have risen nearly 40% since August as the market anticipates the privatisation.
The stock was trading at INR 130.70 ($1.74) in India on Monday, making the state's stake worth $518m.
SCI has a fleet of about 60 tankers, bulkers and offshore vessels, according to its website. It also has stakes in four LNG carriers on long-term charters to Petronet LNG and ExxonMobil.
Mehrotra started his career in 1964 with SCI as a marine engineering officer.
He later arrived in London to establish Foresight in 1984. The company now has a multinational presence in the shipping, drilling and hospitality sectors.
