India: New owner Reliance Infra to pull Pipavav Defence out of corporate debt rejig

Photo: Mint

Anil Ambani-led Reliance Infrastrucrure Ltd, the new owner of Pipavav Defence and Offshore Ltd, on Thursday said it plans to exit the shipyard’s corporate debt restructuring (CDR) programme approved by bankers earlier this year for better financial flexibility.

It is subject to approvals from lenders and regulators.

Reliance Infrastructure, which in March bought 18% stake in Pipavav Defence for Rs.819 crore along with its wholly-owned subsidiary Reliance Defence Systems Pvt. Ltd, has announced an open offer for Pipavav Defence.

“Reliance Infrastructure intends to exit the CDR package that the lenders of Pipavav Defence had approved in March 2015. The exit from the CDR is expected to lead to improved financial flexibility and increased business opportunities for Pipavav Defence, enabling the company to contribute to the security of the country, and pursue the Make in India and Skill India programmes of the Prime Minister of India Narendra Modi, in an even more significant manner,” Reliance Infrastructure said in a statement.

Reliance Infrastructure, through its subsidiary Reliance Defence, will acquire 130 million equity shares from the promoters of Pipavav Defence at Rs.63 per share, the company had said in March.

The open offer by Reliance Infrastructure to acquire 26% more in Pipavav Defence will open on 2 December and close on 15 December.

JM Financial Institutional Securities Ltd will be the sole financial advisor and the manager to the open offer.

“It is expected that the change of control, reconstitution of the board of Pipavav Defence, and change of name of the company to Reliance Defence and Engineering Ltd., will be completed in January 2016,” Reliance Infrastructure said.

The company has recently entered into the defence sector.

The Maharashtra government has allotted 290 acres at Mihan near Nagpur for the development of Dhirubhai Ambani Aerospace Park.

Also Read: India: Reliance Defence in pact with Emirates Defence for strategic partnership

India: Reliance Defence ties up with UAE’s ADSB to build naval ships

This article was first published on Livemint.com

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
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