SAAB invests over 200 crore in PIPAVAV

Monday, May 27, 2013

Mumbai: The investment of MSEK 250, financed from Saab's own readily available resources, gives Saab approximately 3.3 per cent of the capital and votes in the listed Gujarat-based company Pipavav Offshore and Defence Engineering Ltd. (Pipavav)

In a filing to the BSE, Pipavav said that securities allotment and transfer committee of its Board, at the meeting held today, has alloted 2,45,07,881 shares of face value of Rs 10 each to SAAB at a premium of Rs 72 per equity share, aggregating to Rs 200,96,46,242.

Saab serves the global market with world-leading products, services and solutions ranging from military defence to civil security. Saab has operations and employees on all continents and constantly develops, adopts and improves new technology to meet customers’ changing needs.

Pipavav is a well-known company in the naval domain and has the ambition to grow in other areas of defence as well.

And at the same time as the MOU was signed In August 2012, Saab and Pipavav also signed a Technical Partnership Agreement (TPA), a continuation of an ongoing co-operation between the companies covering details about the format for continued relationships and relevant projects.

Saab and Pipavav have previously also jointly formed the Combat System Engineering group, which analyses naval combat system design and architecture. The companies are also exploring next generation combat management systems for the Indian Navy and Coast Guard.

“We are pleased to announce this partnership and our strategic investment in ‘Pipavav’. The investment offers a solid platform for growth on the Indian market and ‘Pipavav’ strengthens its competitive position through ‘Saab’s’ technology,” ‘Saab’ India Market Area Head Lars Olof Lindgren said.

“India is an important market for us and the investment will further reinforce Saab’s strong position on the global defence and security market,” he added.