Saab has sold its 3.3 per cent stake in Pipavav Defence & Offshore Engineering Co. Ltd. to Reliance Defence Systems, which had made a tender offer for outstanding shares in Pipavav.
Pipavav Defence is now part of Reliance Anil Dhirubhai Ambani Group.
“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,” Jan Widerström, Head of Saab India said in a statement.
“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,” Widerström said.
Saab said that the transaction would positively affect the company’s net financial income and cash flow position.
In December, Saab offered to manufacture its fifth generation Gripen fighter aircraft in India with technology transfer.
Saab has also offered to help in the development of India's aerospace capability for the next 100 years, besides partnering in the development of the next version of indigenous light combat aircraft Tejas and the Advanced Medium Combat Aircraft (AMCA), according to a financial newspaper.