Anil Ambani-led Reliance Infrastructure Ltd on 4 March 2015 announced the acquisition of management control of Pipavav Defence and Offshore Engineering Company Ltd (PDOE) for 2082.3 crore rupees. With this acquisition, Reliance Infrastructure Ltd will foray into the emerging business of defence production.
As part of the acquisition, Reliance Infrastructure with its wholly-owned subsidiary Reliance Defence Systems Private Ltd will pay 819 crore rupees to buy 18 percent stake from Nikhil Gandhi-led Pipavav Defence. It will make an offer for an additional 26 percent stake at 66 rupees per share totaling to 1263.3 crore rupees.
After the change in management and control, the company will be renamed Reliance Defence Ltd. and Anil Ambani will be its Chairman.
Post acquisition, the existing promoters of Pipavav Defence will continue to retain a minority stake in the company, together with two non-executive board seats. The acquisition is subjected to all regulatory and statutory approvals.
About Pipavav Defence and Offshore Engineering Company Ltd (PDOE)
Led by Nikhil Gandhi, Pipavav Defence is India's first world class integrated defence production, ship building and offshore infrastructure company.
It is the country's first private sector company to get the licence and contracts to build frontline warships for the Indian Navy.
It has one of the world's largest infrastructure facilities spread over 841 acres of land on the Gujarat coast and has one of the world's largest dry docks measuring 662 meters in length and 65 meters in width.
When: 4 March 2015
DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.