New Delhi: Mazagon Dock Shipbuilders Limited (MDL), a state-owned premier Indian shipbuilding company, has approved the acquisition of a controlling and substantial stake in Colombo Dockyard PLC (CDPLC), a publicly listed company on the Colombo Stock Exchange, Sri Lanka.
In its recent meeting, MDL agreed to invest up to USD 52.96 million (approximately Rs 452 crore) to acquire 51% equity shares in CDPLC through a mix of primary subscription and secondary acquisitions from existing shareholders, including Onomichi Dockyard Co. Ltd., the majority shareholder of CDPLC.
This acquisition will make Colombo Dockyard a subsidiary of Mazagon Dock, subject to regulatory approvals from both Indian and Sri Lankan stock exchanges.
Definitive Agreements Signed, Completion Expected Within Six Months
To formalize the transaction, MDL, CDPLC, and Onomichi Dockyard have executed definitive agreements detailing the terms and conditions of the proposed acquisition. The deal is expected to be completed within 4 to 6 months, pending necessary regulatory clearances.
Strategic Benefits: Operational Synergies and Market Expansion
According to the exchange filing, this strategic acquisition is aimed at strengthening Mazagon Dock’s position in the shipbuilding and ship repair industry by unlocking operational synergies and enhancing research and development capabilities.
The move will also help the company expand its market reach, aligning with its long-term growth vision in the sector.
About Colombo Dockyard PLC
Colombo Dockyard PLC is a public limited company incorporated under Sri Lankan law. It specializes primarily in shipbuilding and ship repair, serving as one of the key players in Sri Lanka’s maritime industry.
About Mazagon Dock Shipbuilders Ltd
MDL, headquartered in Mazagaon, Mumbai, is a premier defence public sector undertaking under the Ministry of Defence. The shipyard specializes in the construction of warships, submarines, and a range of offshore platforms and vessels. MDL plays a pivotal role in advancing India’s naval capabilities and supports the Government of India’s ‘Make in India’ initiative through its indigenous shipbuilding efforts.
Read Also: Result: Mazagon Dock (MDL) Posts ₹3,174 Cr Revenue in Q4FY25, Recommends ₹2.71 Final Dividend
