Mazagon Dock Acquires Colombo Dockyard for Rs 452 Cr

New Delhi, Jun 27 (PTI) India's biggest warship builder Mazagon Dock Shipbuilders Ltd on Friday said it has decided to acquire a controlling stake in Colombo Dockyard PLC in an all-cash deal of about Rs 452 crore.

The Mumbai-headquartered shipbuilder, in a regulatory filing, said the proposed acquisition will enable the company to strengthen its position in the ship repair and shipbuilding industry by unlocking operational synergies, enhancing research development capacities and expanding market reach.

"It supports the company's long-term growth vision in the shipbuilding and ship repair industry," Mazagon Dock Shipbuilders said.

This is the first instance of an Indian shipyard, both state-owned and private, acquiring a shipyard overseas.

The proposed acquisition is expected to be completed within 4 to 6 months.

"The Board of Directors of Mazagon Dock Shipbuilders Limited inter alia considered and approved the acquisition of a controlling and substantial stake of Colombo Dockyard PLC by way of an investment not exceeding USD 52.96 million (approximately Rs 452 crore) considering prevailing exchange rate) in the securities of CDPLC through a combination of primary subscription and secondary acquisitions from the shareholders of CDPLC," it said.

Colombo Dockyard PLC is a publicly listed company incorporated under the laws of Sri Lanka.

The company is listed on the Colombo Stock Exchange and is engaged in the business of shipbuilding and ship repair.