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Pipavav Defence inks share subscription cum shareholders agreement with SAAB

02 Nov 2012 Evaluate

Pipavav Defence and Offshore Engineering Company has signed a share subscription cum shareholders agreement with SAAB AB, Sweden (SAAB), a part of Wallenberg Group for issue of 24,607,881 fully paid-up equity shares of face value of Rs 10 each at a issue price of Rs 82 per equity share to SAAB which is 7.75% premium to the average of six month’s weekly closing price.

The company has inked an agreement pursuant to board approval, subject to required corporate and statutory approvals, approved issue of equity shares to SAAB on preferential allotment basis.

Also, under the aforesaid agreement, SAAB will invest 250 million Swedish Kronors in the company. This is the first strategic investment made by a global defence major into an Indian company focusing on defence production. SAAB and Pipavav Defence partnership will also focus on exporting military hardware

SAAB is a global leader in military hardware meant for Army, Navy and Air Force and will bring in advance proprietary technology in India through the company, which will immensely benefit India’s armed forces.

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