Monday 22 July 2019, 11:38 PM
Reliance Infrastructures Ltd. takes over Pipavav
By IANS | Bharat Defence Kavach | Publish Date: 3/4/2015 12:00:00 AM

Mumbai: Reliance Infrastructure Limited today announced the acquisition of Pipavav Defence and Offshore Engineering Company Limited, together with sole management control.

Reliance Infrastructure, together with its wholly owned subsidiary Reliance Defence Systems Private Limited, has agreed to acquire from the Promoters of Pipavav Defence 13,00,00,000 equity shares representing approx. 18% shareholding in the Company at a price of Rs. 63 per Share, aggregating Rs. 819 crore. 

Pursuant to the aforesaid acquisition resulting in a change in management and control of the Company, Reliance Defence Systems Ltd., a subsidiary of Reliance Infrastructure Ltd. has issued a Public Announcement to make a mandatory open offer to acquire 26% shares from the public shareholders of the Company, at a price of Rs. 66 per share, in terms of applicable SEBI Takeover Regulations.

As per the agreement with the Promoters, Reliance will also acquire from them such number of additional equity shares of the Company, at the same price of Rs. 63 per share, as is required to ensure that Reliance’s shareholding is not less than 25.10% of the Target Company, after taking into account the acquisitions made under the Open Offer.

Post the transaction, the existing promoters of Pipavav Defence will continue to retain a minority stake in the Company, together with two non-executive Board seats.

The transaction is subject to certain conditions precedent and various statutory approvals, etc.

Post completion of the transaction, Mr. Anil D. Ambani, Chairman, Reliance Group, will become Chairman of the Company.

Commenting on the transaction, Mr. Ambani said “This is a unique opportunity for Reliance Group to participate in Prime Minister Mr. Narendra Modi’s “Make in India” programme for the high growth defence sector.”

Mr. Ambani added, “We are confident that our strategic investment will create long term value for all stakeholders.”

Mr. Nikhil Gandhi, the founder promoter and Chairman of Pipavav Defence and SKIL, stated, “This transaction is an endorsement of the vision we set out to achieve almost 10 years ago. Aside from the commonality of vision, we share a philosophy of long-term value creation for all stakeholders. I look forward to supporting Reliance to realize the goal of creating India’s foremost defence company, with an emphasis on the ''Make in India'' programme initiated by the Hon''ble Prime Minister of India.” 

Mr. Bhavesh Gandhi, co-promoter and Vice Chairman of Pipavav Defence stated, “I expect Reliance’s strategic investment to accelerate our progress towards meeting the needs of our Nation, and creating sustainable social value in the community we operate in.”

JM Financial Institutional Securities Limited is the sole financial advisor and the Manager to the Open Offer.

Reliance Infrastructure Limited:

Reliance Infrastructure Ltd (Rlnfra) is amongst the largest infrastructure companies in India, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors within the infrastructure space i.e. Roads, Metro Rail and Cement.

Rlnfra is also a leading utility company, having presence across the value chain of power businesses i.e. Generation, Transmission, Distribution, Power Trading.

Rlnfra through its SPVs has executed a portfolio of infrastructure projects such as a metro rail project in Mumbai on build, own, operate and transfer (BOOT) basis; eleven road projects with total length of 1,000 Kms on build, operate and transfer (BOT) basis, and has built a cement plant of capacity of five million tonnes in Madhya Pradesh, with the second plant of 5 million tonnes capacity presently under development in Maharashtra.

Rlnfra along with its wholly owned subsidiary company generates over 940 MW of power through its five power stations; and distributes power to over 64 lakh consumers in Mumbai and Delhi. 

Rlnfra subsidiary companies have commissioned three transmission projects by installing eight national grid lines, being the first set of lines commissioned in India by the private sector.

Rlnfra also provides Engineering, Procurement and Construction (EPC) services for developing power and road projects, etc.

Pipavav Defence and Offshore Engineering Company Limited:

Pipavav Defence is India''s first world class integrated defence production, ship building and offshore infrastructure company.

Pipavav Defence is India''s first private sector company to get the license and contracts to build frontline warships for the Indian Navy.

Pipavav Defence has one of the world''s largest Infrastructure facilities - spread over 841 acres of land on the West Coast of India (Gujarat), Gulf of Cambay, with 210 acres of fully developed water front land and 250 acres developed for shipbuilding.

Pipavav Defence has India''s largest, and one of the world’s largest dry docks, measuring 662 meters in length and 65 meters in width. The second dry dock measuring 750 meters in length and 60 meters in width is under development. 

With a strong and dedicated team of people, Pipavav Defence has the capabilities to produce a wide range of naval vessels for Defence, Offshore (E&P) assets, Hydrocarbon Vessels and commercial applications.

Strong Partnerships with Global Players

SAAB Technology AG, Sweden – part of the $ 160 Billion Swedish multinational giant USD Wallenberg Group, a global leader in defence and Aerospace, has technology and equity partnership with Pipavav Defence for proprietary technology transfer for the Indian Armed Forces, for manufacturing Missile Systems, Underwater Systems and Aerostructure for fighter jets, etc.

DCNS (France), owned by Ministry of Defence, Government of France, a world leader in naval defence, has a technology tie-up with Pipavav Defence.

Sembcorp Marine (Singapore), part of Temasek, Government of Singapore and a leading global marine engineering group, has a strategic and equity partnership with Pipavav Defence.

JSC Zvyozdochka, a Russian Government owned shipyard,  having specialisation in construction and refitment of Russian origin submarines, and having strong business relationship with Government of India, has signed an exclusive partnership agreement with Pipavav Defence.

Rosoboron Export, Russia, is the sole state intermediary agency for Russia’s export / import of defence related products, technologies and services and accounts for 90% of Russia’s Annual arm sales. Pipavav Defence has a tie-up with Rosoboron to cover mid life updates, dry docking, repairs and modernisation of submarines of Russian origin in use by the Indian Navy.

AtlasElektronik, part of Atlas Elektronik GmbH a leading supplier of maritime electronic systems in the international market has entered into a MOU with Pipavav Defence to build heavy weight Torpedoes and Sonar for the Indian Navy.

Sagem Defence Securite, part of Sagem Group, a European leader in optronics, avionics, electronics and critical software space for both civil and military markets has entered into a MOU with Pipavav Defence to jointly sell, produce and maintain long range air borne multi sensors multi spectral electro optical system.

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Reliance Infrastructures Ltd. takes over Pipavav

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