Pipavav Defence to get investment from SAAB of Sweden

Sweden’s Saab AB will invest Rs.201 crore (250 million Swedish kronors) for a stake in Pipavav Defence and Offshore Engineering Co. Ltd, the first strategic investment made by a global defence company in an Indian shipbuilder focused on defence production.

Pipavav Defence has signed a stock subscription-cum-shareholders agreement with Saab for the sale of 24.5 million shares at a price of Rs.82 a share. The transaction is at a 7.75% premium to the average of Pipavav Defence’s.

Saab will own 3.5% of Pipavav Defence after the transaction is completed and will have an option to increase it to 10%.

Courtesy: http://www.livemint.com/Companies/Ls4a7J7sKABMELGnlsGbFJ/Pipavav-Defence-to-get-investment-from-SAAB-of-Sweden.html