Anil Ambani-led Reliance Infrastructure has picked up an additional 17-per cent stake in Pipavav Defence for an estimated Rs 850 crore through an open offer taking its total holding in the company to nearly 35 per cent.
Reliance Infrastructure issued a statement on Wednesday announcing closing of the open offer period for the acquisition of Pipavav Defence and Offshore Engineering Co Limited. According to banking sources, Reliance Infrastructure has purchased the additional 17-per cent stake for an estimated Rs 850 crore.
The open offer was made by Reliance Infrastructure and its wholly-owned subsidiary Reliance Defence Systems Private Limited. The company did not disclose specific details about the open offer citing regulatory obligations. Upon completion of applicable formalities, Reliance Infrastructure will acquire sole management control of Pipavav Defence and the Board of Pipavav will be reconstituted together with the company being renamed Reliance Defence and Engineering Limited, the statement said.
The payment for validly tendered shares subject to scrutiny and processing will be completed by December 31, 2015. Soon after the announcement of the open offer by Reliance Infrastructure, shares of Pipavav Defence surged nearly 16 per cent to Rs 76 on the Bombay Stock Exchange. The open offer-for acquiring an additional 26-per cent for up to Rs 1,263 crore-was on from December 2 till December 15.
In March, the Anil Ambani Group firm had announced plans to acquire a controlling stake in Pipavav Defence for up to Rs 2,082 crore. The company has already acquired about 18 per cent stake from Pipavav Defence's promoters for Rs 819 crore at a price of Rs 63 apiece. The Competition Commission of India (and the Gujarat Maritime Board have approved the acquisition together with management control of Pipavav Defence.