Security and defense company Saab of Sweden has sold its stake – approximately 3.3 percent – in Pipavav Defense and Offshore Engineering Company Limited to Reliance Defense Systems.
The value of the transaction was not revealed, but it forms part of Reliance Defense’s efforts to expand its ownership in Pipavav. In March 2015 Reliance Defense had acquired a 17.66% stake in the company for $124 million, (INR 8.19 billion) and an additional 17% stake in December for an estimated $139 million, (INR 8.5 billion) with the latter progressing through an open offer to shareholders. With the acquisition of Saab’s share, Reliance Defense Ltd., now has the controlling stakes in Pipavav.
“It is natural to act on the inquiry we got from Reliance Defense Systems to acquire our stake in Pipavav. We believe the cooperation between Saab and Pipavav now has the potential to get even better with the new owner,” said Jan Widerström, head of Saab India. “Saab works actively in support of India’s strategy to increase its national ability to produce defense material. Local partnerships are being fostered to meet the needs of the customer and the market conditions,” he added.
The acquisition of Pipavav has given Reliance an infrastructural base to manufacture aircraft carriers, submarines and warships domestically reports The Hindu Business Line.