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Home arrow Mergers and Acquisitions arrow Pipavav to acquire 51 % equity stake in Conceptia Software Technologies
Pipavav to acquire 51 % equity stake in Conceptia Software Technologies Print E-mail
Written by Vijay   
Wednesday, 17 August 2011
Mumbai: Pipavav Defence and Offshore Engineering Company plans to acquire 51 percent equity stake in Conceptia Software Technologies Pvt. Ltd., a Ship Design, engineering and consulting firm.

Conceptia has expertise in preparation of detailed designs and 3D modeling for Ships and offshore oil & gas assets. The acquisition is expected to bring synergy and integration which will enhance the growth of both companies in the defence and offshore oil & gas sector.

Pipavav's Board of Directors, at its meeting held on August 12, 2011, approved the conversion of the existing wet basin of the Company into the 2nd dry dock, which will enhance the Company's capabilities to cater to growing defence sector demand both within and outside the country. For this, the Board approved raising of long-tem debts upto Rs. 1,300 Crore out of which Rs. 1,000 Crore have been approved by lenders while remaining 300 Crore are under the process of syndication.

Pipavav has commenced construction process of warships - Naval Offshore Patrol Vessels (NOPVs) and has signed design engineering contract with a company under the aegis of Ministry of Defence, Russia within a span of two months from the date of award of contract by Indian Navy. It has signed a major protocol with a Company controlled by Russian Ministry of Defence for a potential contract of approx. US$ 2 Bn.

The Company has initiated the process of working with governments of six friendly nations to build warships for them at the Company's facilities at Pipavav, besides working towards developing strategic maritime assets for one such friendly nation in accordance with guidelines/ policies of Government of India.

Pipavav will acquire Conceptia's shares from existing shareholders and partly by subscribing to the new shares to be issued by Conceptia. The Company has executed a Share Purchase Agreement with shareholders of Conceptia for acquiring 25.50% of the present paid-up share capital of Conceptia. The Company has also executed a Share Subscription and Shareholders' Agreement with Conceptia agreeing to further subscribe to new equity shares of Conceptia in one or more tranches. Post the said subscription, the aggregate shareholding of the Company in Conceptia will be 51%.

Conceptia is a Ship Design, engineering and consulting firm. Conceptia also provides CAD services and markets engineering solutions. It is headquartered in Bengaluru and has offices in Delhi, Cochin and United Arab Emirates. It also has a subsidiary in Singapore for marketing its services and products in Asia Pacific region. 

Pipavav Defence and Offshore Engineering Company Ltd has posted a net profit of Rs 79.434 million for the quarter ended June 30, 2011 as compared to net loss of Rs (97.898) million for the quarter ended June 30, 2010. Total Income has increased from Rs 1885.514 million for the quarter ended June 30, 2010 to Rs 3449.042 million for the quarter ended June 30, 2011.

 
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