EADS, Pipavav to Form Aircraft Maintenance Venture in India

Sept. 28 (Bloomberg) -- Pipavav Shipyard Ltd., 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.

To contact the reporter on this story: Hari Govind in Mumbai at hgovind@bloomberg.net

To contact the editor responsible for this story: Hari Govind at hgovind@bloomberg.net