Mumbai, Nov 26 (IANS) The Anil Ambani-led Reliance Infrastructure on Thursday said a 13-day open offer to acquire at least 26-percent shares of Pipavav Defence will commence on December 2, and it hoped to conclude the change of name and management control by the following month.
“Upon the above steps being completed and subject to the relevant approvals as may be necessary, Reliance Infrastructure intends to exit the CDR (corporate debt restructuring) package that the lenders of PDOC (Pipavav Defence) had approved in March 2015,” the company said in a statement.
The exit from the debt restructuring programme is expected to improve financial flexibility and business opportunities for the acquired company, enabling it to contribute significantly to the “Make in India” and “Skill India” programmes, it added.
The company had earlier said that the mandatory open offer for up to 26 percent equity from the public will be at a price of Rs.66 per share, based on the takeover norms of the markets regulator.
As per the agreement with the promoters of Pipavav Defence, Reliance will acquire 13,00,00,000 equity shares representing 18 percent of the former’s shareholding at a price of Rs.63 per share, aggregating Rs.819 crore, Reliance said.
Reliance Infrastructure is developing projects through various investment vehicles in several high-growth sectors within the infrastructure space — such as power, roads, metro rail and defence.
In the defence space, the Maharashtra government recently allotted 290 acres of land at Mihan near Nagpur for the development of India’s first smart city for the sector, named Dhirubhai Ambani Aerospace Park, after its legendary founder.