Reliance Infrastructure acquires Pipavav Defence
Anil Ambani-led Reliance Infrastructure has acquired Pipavav Defence and Offshore Engineering in an all-cash deal.
The acquisition will be done by Reliance Infrastructure, along with its wholly owned subsidiary Reliance Defence Systems Pvt Ltd.
As part of deal
- Reliance Infra will first invest Rs 819 crore to acquire 17.66 per cent stake from the promoters and subsequently an additional 26 per cent stake at Rs 1,266 crore.
- While, Anil Ambani will take over as chairman of Pipavav Defence with full management control.
Reliance Infra with this acquisition has joined a growing list of Indian companies entering the defence sector in a big way.
Pipavav Defence has an order book of Rs 12,000 crore and has technology tie-ups with global defence companies. Its global defence technology tie-ups include Sembcorp Marine of Singapore, Sweden’s SAAB, France’s DCNS, Singapore’s Sembcorp Marine and JSC Zvyozdochka and Rosoboron Export of Russia.
Pipavav Defence also has one of the world’s largest Greenfield infrastructure facilities in Gujarat spread across 841 acres, with 210 acres of fully developed water-front land and 250 acres developed for shipbuilding.
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Month: Current Affairs - March, 2015