Pipavav Shipyard Ltd. (PIPV), India’s biggest shipbuilder by market value, said it agreed to form a venture with European Aeronautic, Defence & Space Co. and SKIL Infrastructure Ltd. to set up an aircraft maintenance facility.
EADS, the maker of Airbus SAS aircraft, will acquire a 26 percent stake in the Indian venture, Pipavav said in a statement to the Bombay Stock Exchange today. EADS may further increase the holding to 49 percent, according to the statement.
The facility and related infrastructure may cost $100 million in the first phase, Pipavav said. The company, based in Gujarat, will hold a 51 percent stake in the venture that will be used for civilian and military applications, it said.
Pipavav gained 2.6 percent to 79.8 rupees at the 3:30 p.m. close of trading in Mumbai, before it announced the venture plan. The stock has dropped 8 percent this year.
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