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Reliance Infra acquires Pipavav for up to Rs 2,082 crore
By ET Bureau | 5 Mar, 2015,
MUMBAI: Reliance Infrastructure (RInfra) has agreed to purchase 18% stake from the promoters of debt-laden Pipavav DefenceBSE -10.00 % and Offshore Engineering (PDOE), Nikhil and Bhavesh Gandhi, at Rs 63 per share, implying a valuation of Rs 819 crore, marking the Anil Amabanihelmed company's entry into the defence sector, which has emerged as the centerpiece of Prime Minister Narandra Modi's 'Make in India' programme.
Reliance Infrastructure trumped Mahindra & Mahindra and the Hero group which were also in the running for Pipavav.
Reliance Defence Systems, a subsidiary of Reliance Infrastructure, will also make an open offer to acquire another 26% for Rs 66 per share, Reliance Infra said in a press statement. If the open offer is successful, the Reliance Group will have to fork out Rs 1,263 crore for a 26% stake, taking the total acquisition cost to Rs 2,082 crore. As per the agreement with the promoters, Reliance will also acquire from them additional equity shares at Rs 63 per share to ensure that Reliance's shareholdi is not less than 25.10%, according to the press release. Anil D Ambani, chairman, Reliance Group, will become the chairman of the company, which will be renamed Reliance Defence.
The Gandhis are known for building large infrastructure projects and selling them off while retaining a minority stake. In early 2000, they built one of India's largest special economic zones on the outskirts of Mumbai jointly with the state development agency and later sold it to Reliance Industries.
So friends is good news or bad news
I think bad since reliance is involved and that to Anil
By ET Bureau | 5 Mar, 2015,
MUMBAI: Reliance Infrastructure (RInfra) has agreed to purchase 18% stake from the promoters of debt-laden Pipavav DefenceBSE -10.00 % and Offshore Engineering (PDOE), Nikhil and Bhavesh Gandhi, at Rs 63 per share, implying a valuation of Rs 819 crore, marking the Anil Amabanihelmed company's entry into the defence sector, which has emerged as the centerpiece of Prime Minister Narandra Modi's 'Make in India' programme.
Reliance Infrastructure trumped Mahindra & Mahindra and the Hero group which were also in the running for Pipavav.
Reliance Defence Systems, a subsidiary of Reliance Infrastructure, will also make an open offer to acquire another 26% for Rs 66 per share, Reliance Infra said in a press statement. If the open offer is successful, the Reliance Group will have to fork out Rs 1,263 crore for a 26% stake, taking the total acquisition cost to Rs 2,082 crore. As per the agreement with the promoters, Reliance will also acquire from them additional equity shares at Rs 63 per share to ensure that Reliance's shareholdi is not less than 25.10%, according to the press release. Anil D Ambani, chairman, Reliance Group, will become the chairman of the company, which will be renamed Reliance Defence.
The Gandhis are known for building large infrastructure projects and selling them off while retaining a minority stake. In early 2000, they built one of India's largest special economic zones on the outskirts of Mumbai jointly with the state development agency and later sold it to Reliance Industries.
So friends is good news or bad news
I think bad since reliance is involved and that to Anil