Reliance Buys Saab’s Stake In Pipavav Shipyard

Reliance Defense Systems has bought Saab’s (approximately 3.3 per cent) stake in India’s Pipavav Defense and Offshore.

“It is natural to act on the inquiry we got from Reliance Defence Systems to acquire our stake in Pipavav. We believe the cooperation between Saab and Pipavav now has the potential to get even better with the new owner,” says Jan Widerström, head of Saab India said in a statement Thursday.

“Saab works actively in support of India’s strategy to increase its national ability to produce defence material. Local partnerships are being fostered to meet the needs of the customer and the market conditions,” says Jan Widerström.

Saab had invested in Pipavav in 2012. India’s Reliance has made a tender offer on outstanding shares in Pipavav. The transaction will positively affect Saab’s net financial income and cash flow positively.

The information is that which Saab AB is required to declare by the Securities Business Act and/or the Financial instruments Trading Act. The information was submitted for publication on 31 December 2015.