Reliance Infra proceeds to complete purchase of Pipavav Defence

Anil Ambani-led Reliance Infrastructure on Monday announced that all necessary approvals, including that of the Competition Commission of India (CCI) and the Gujarat Maritime Board (GMB), have been received for its acquisition of Pipavav Defence and Offshore Engineering Co.

"Reliance Infrastructure, together with its wholly owned subsidiary Reliance Defence Systems Pvt. Ltd., is accordingly proceeding to complete the acquisition of Pipavav Defence," the Reliance said here in a statement.

"The mandatory open offer to acquire up to 26 percent shares from public shareholders of the company, at a price of Rs.66 per share, in terms of applicable SEBI Takeover Regulations shall open on December 2, 2015 and shall close on December 15, 2015," the statement added.

As per the agreement with the promoters of Pipavav Defence, Reliance will acquire 13,00,00,000 equity shares representing 18 percent of the former's shareholding at a price of Rs.63 per share, aggregating Rs.819 crore, Reliance said.

"Reliance will also acquire from the promoters of Pipavav Defence 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 percent of the target company, after taking into account the acquisitions made under the open offer," the statement added.

Referring to the deal earlier in the year, Reliance Group chairman Anil Ambani had said the acquisition of Pipavav Defence in Gujarat with assets worth more than Rs.10,000 crore was his company's contribution towards self reliance.

"Pipavav has the largest dry dock in the country and the second largest in the world. With more than 30 lakh sq. ft. of covered area for fabrication and integration alone, this is perhaps the largest single location defence manufacturing facility in India," he said.

He said the Pipavav facility will be capable to deliver "all requirements of the Indian Navy from frigates to aircraft carriers to submarines".