ABG Shipyard has appointed an investment bank to explore possible investors but has not confirmed a Russian company is to bid for the yard.
The debt-laden Indian firm saw its shares jump as much as 17% today, following local media reports that a Russian shipbuilder would soon get a controlling stake.
Indian’s stock exchange asked for some clarification from ABG shortly after.
ABG said in an announcement: “The company is exploring the possibility of strategic investors so as to improve the company’s financial and operational strength.
“For this purpose, the company has appointed Rothschild investment banker.”
The Business Standard reported that ABG is in advanced talks with a Russian shipbuilder.
ABG, which is midway its efforts to implement a shares-to-equity conversion, is also reportedly targeted by local investors.
“The company does not have any information which required to be disclosed to the stock exchanges,” ABG added.
