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Swedish defence company Saab, which had announced an investment of 250 million Swedish Kroner (Rs 209 crore) in the listed Indian company Pipavav Offshore and Defence Engineering, has acquired 3.33 per cent stake in the company following the investment.
In August 2012, the defence and security company Saab had announced that a memorandum of understanding had been signed with the Indian shipbuilder concerning a strategic investment.
Earlier this year, the fair trade regulator Competition Commission of India (CCI) had approved the proposed acquisition of 3.33 per cent stake in Pipavav Defence by the Swedish firm. Citing that the management and control of Pipavav would remain with its promoters, CCI had said the proposed combination would not have an appreciable adverse effect on competition in India.
Following the investment, Saab is now eligible to vote in the company. The investment is to be financed from Saab's own readily available resources, the company said in a statement.
Lars Olof Lindgren, Head of Market Area, Saab India added that the investment offered a solid platform for growth in the Indian market for Saab, while Pipavav would be able to strengthen their competitive position through Saab’s technology.
As per the deal, the global defence, aerospace and security company is to purchase around 2.45 crore shares.
amritanair.ghaswalla@thehindu.co.in
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