Reliance Infrastructure, a part of Anil Dhirubhai Ambani Group and one of the largest infrastructure companies, announced the acquisition of Pipavav Defence and Offshore Engineering Company, together with sole management control.

Reliance Infrastructure, together with its wholly owned subsidiary Reliance Defence Systems, has agreed to acquire from the Promoters of Pipavav Defence 13,00,00,000 equity shares representing approx. 18% shareholding in the company at a price of Rs 63 a share, aggregating Rs 8.19 billion.

Pursuant to the aforesaid acquisition resulting in a change in management and control of the Company, Reliance Defence Systems, a subsidiary of Reliance Infrastructure has issued a public announcement to make a mandatory open offer to acquire 26% shares from the public shareholders of the company, at a price of Rs 66 a share, in terms of applicable SEBI Takeover Regulations.

As per the agreement with the Promoters, Reliance will also acquire from them such number of additional equity shares of the Company, at the same price of Rs 63 a share, as is required to ensure that Reliance's shareholding is not less than 25.10% of the Target Company, after taking into account the acquisitions made under the Open Offer.

Post the transaction, the existing promoters of Pipavav Defence will continue to retain a minority stake in the company, together with two non-executive board seats.

The transaction is subject to certain conditions precedent and various statutory approvals, etc.

Post completion of the transaction, Anil D. Ambani, chairman, Reliance Group, will become chairman of the company.

Ambani said, ''This is a unique opportunity for Reliance Group to participate in Prime Minister Narendra Modi's ''Make in India'' programme for the high growth defence sector.''

Ambani added, ''We are confident that our strategic investment will create long term value for all stakeholders.''

Nikhil Gandhi, the founder promoter and chairman of Pipavav Defence and SKIL, stated, ''This transaction is an endorsement of the vision we set out to achieve almost 10 years ago. Aside from the commonality of vision, we share a philosophy of long-term value creation for all stakeholders. I look forward to supporting Reliance to realize the goal of creating India’s foremost defence company, with an emphasis on the 'Make in India' programme initiated by the Hon'ble Prime Minister of India.''

Bhavesh Gandhi, co-promoter and vice chairman of Pipavav Defence stated, ''I expect Reliance's strategic investment to accelerate our progress towards meeting the needs of our Nation, and creating sustainable social value in the community we operate in.''

Shares of the company gained Rs 7.25, or 1.53%, to trade at Rs 482.15. The total volume of shares traded was 0 at the BSE (9.08 a.m., Thursday).