New Delhi: Pipavav Defence and Offshore Engineering Company Ltd (PDOECL) is in "advanced stages" of discussions with DCNS for a strategic partnership, which may include selling some stake to the French defence major. "We are at an advanced stage of discussion with the French company, DCNS, a world renowned warship and submarine builder, for a strategic partnership that will allow for the transfer of state-of-the-art technologies to PDOECL.
"An investment from DCNS in our company is also on the cards," Pipavav's Chairman Nikhil Gandhi said in a communique to the shareholders. He did not elaborate further. In June 2012, Pipavav had said that it has decided to establish the strategic partnership with DCNS for bringing in its technologies, methods and skills.
DCNS product portfolio includes Scorpene submarine. Industry sources said that talks between the two firms are on for quite some time for forging the partnership, which include negotiations on Pipavav offloading some of its equity to DCNS.
However, both the firms are yet to finalise the size of the stake sale and its route, they said. The stake sale's route could be through issuing new equity to DCNS, thereby diluting the present share capital of Pipavav, they added. This could not be confirmed from the company. An e-mail and SMS sent to Nikhil Gandhi on the issue remained unanswered....more
04:45 PM, Apr 17, 2013