Saab Signs Investment Deal with Pipavav Offshore and Defence Engineering Ltd
LINKÖPING, Sweden -- November 01, 2012
Defence and security company Saab (STO:SAABB) has today signed a deal with
Pipavav Offshore and Defence Engineering Ltd (Pipavav), India, about an
investment in the company of MSEK 250. The investment is made in shares which
will be issued through a directed share issue, which is dependent on approval
from an extraordinary General Meeting held by Pipavav in the fourth quarter
2012. After the investment, Saab will hold approximately 3.5 per cent of the
capital and votes in Pipavav.
On 24 August of this year, Saab announced that a Memorandum of Understanding
(MOU) had been signed concerning a strategic investment in the Indian company
Pipavav. At the same time, both companies signed a Technical Partnership
Agreement (TPA), a continuation of ongoing co-operation between the companies
and covering details about the format for continued relationships and relevant
projects. Today, an agreement on the strategic investment of approximately
MSEK 250 was signed. The investment will be made through an issue of new
shares issued to Saab. Finalisation of the investment is expected to be made
within 3 months, under the condition it meets the necessary approval of the
shareholders meeting of Pipavav and government approvals. After the
investment, Saab will hold approximately 3.5 percent of the capital and votes
Pipavav is today one of the strongest private players in the naval domain in
India and has the ambition to grow also in other areas of defence. The
co-operation offers a strong partnership for Saab and a good platform from
which to grow on the Indian market.
The two companies earlier jointly formed the Combat System Engineering group,
which analyses naval combat system design and architecture. The companies are
also exploring next generation combat management systems for the Indian Navy
and Coast Guard.
Saab serves the global market with world-leading products, services and
solutions ranging from military defence to civil security. Saab has operations
and employees on all continents and constantly develops, adopts and improves
new technology to meet customers’ changing needs.
The information is that which Saab AB may be required to declare by the
Securities Business Act. The information was submitted for publication on 1
November, 14.00 CET.
This information was brought to you by Cision http://www.cisionwire.com
+46 (0) 734187 214,
Saab Press Centre,
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