Reliance Infra bags PDOECL for Rs 819 crore

Reliance Infrastructure has decided to acquire Pipavav Defence and Offshore Engineering Company (PDOECL), together with sole management control.

As part of the deal, Reliance Infrastructure, along with its wholly owned subsidiary Reliance Defence Systems Private, will acquire 13 crore shares (18 per cent shareholding) at Rs 63 per share totaling to Rs 819 crore, Reliance Infrastructure said.

After the acquisition of 18 per cent, Reliance Defence Systems will make an open offer to acquire 26 per cent from the public shareholders at Rs 66 per share, Reliance Infrastructure said.

As per the agreement, Reliance will also acquire from the promoters, such number of additional shares of the company at the same price of Rs 63 per share, as is required, to ensure that Reliance’s shareholding is not less than 25.1 per cent of  Pipavav, after taking into account the acquisitions made under the open offer, Reliance Infra said.

The existing promoters of Pipavav will continue to retain a minority stake in the company along with two non- executive board seats. The deal is subject to certain conditions and statutory approvals.