Saab Signs Investment Deal with Pipavav Offshore and Defence Engineering
Defence and security company Saab has today signed a deal with Pipavav Offshore and Defence Engineering Ltd (Pipavav), India, about an investment in the company of MSEK 250. The investment is made in shares which will be issued through a directed share issue, which is dependent on approval from an extraordinary General Meeting held by Pipavav in the fourth quarter 2012. After the investment, Saab will hold approximately 3.5 per cent of the capital and votes in Pipavav.
Stockholm, 1 November, 2012 – On 24 August of this year, Saab announced that a Memorandum of Understanding (MOU) had been signed concerning a strategic investment in the Indian company Pipavav. At the same time, both companies signed a Technical Partnership Agreement (TPA), a continuation of ongoing co-operation between the companies and covering details about the format for continued relationships and relevant projects. Today, an agreement on the strategic investment of approximately MSEK 250 was signed. The investment will be made through an issue of new shares issued to Saab. Finalisation of the investment is expected to be made within 3 months, under the condition it meets the necessary approval of the shareholders meeting of Pipavav and government approvals. After the investment, Saab will hold approximately 3.5 percent of the capital and votes in Pipavav.
Pipavav is today one of the strongest private players in the naval domain inIndiaand has the ambition to grow also in other areas of defence. The co-operation offers a strong partnership for Saab and a good platform from which to grow on the Indian market.
The two companies earlier 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.
Source : Saab AB (OMX Stockholm: SAAB B)