Saab To Invest In Indian Offshore Defense Company

Saab has signed a deal with Pipavav Offshore and Defence Engineering Ltd (Pipavav), India, to invest about Rs 201.6 crore in the company. The investment is made in shares which will be issued through a directed share issue, which is dependent on approval from an extraordinary General Meeting held by Pipavav in the fourth quarter 2012. After the investment, Saab will hold approximately 3.5 per cent of the capital and votes in Pipavav. The investment will be made through an issue of new shares issued to Saab. Finalisation of the investment is expected to be made within 3 months, under the condition it meets the necessary approval of the shareholders meeting of Pipavav and government approvals. After the investment, Saab will hold approximately 3.5 percent of the capital and votes in Pipavav. The two companies earlier jointly formed the Combat System Engineering group, which analyses naval combat system design and architecture. The companies are also exploring next generation combat management systems for the Indian Navy and Coast Guard.