Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Mazagon Dock Shipbuilders Limited (MDL) has acquired a 41.73 per cent stake in Sri Lanka's Colombo Dockyard PLC (CDPLC) through the allotment of 16.49 crore unsubscribed rights shares previously held by Japan's Onomichi Dockyard. This is the first phase of a planned USD 52.96 million investment aimed at reviving Sri Lanka's largest shipbuilding and repair facility. The deal includes a mandatory offer for additional shares under Sri Lanka's takeover rules. The partnership is expected to enhance technical capabilities, integrate supply chains, and expand regional and global shipbuilding and repair opportunities.
Mazagon Dock Shipbuilders Limited (MDL) has completed the acquisition of a 41.73 per cent stake in Colombo Dockyard PLC (CDPLC), Sri Lanka's largest shipbuilding and repair company. The acquisition was made through the allotment of 16.49 crore unsubscribed rights shares originally held by Onomichi Dockyard Co. Ltd, Japan. This investment is part of MDL's broader plan, approved last year, to invest up to USD 52.96 million in Colombo Dockyard. Advertisement
Following the acquisition, MDL is required to make a mandatory offer to existing CDPLC shareholders as per Sri Lanka's Takeovers and Mergers Code. The arrangement comes under a tripartite agreement between MDL, CDPLC, and Onomichi Dockyard.
Colombo Dockyard has faced financial stress over several years due to global shipbuilding challenges, the impact of the Covid-19 pandemic, the Easter Sunday attacks, Sri Lanka's economic crisis, and rising interest rates. Its shares were placed on the Colombo Stock Exchange's watch list in mid-2024 after auditors raised concerns about its ability to continue operations. After Onomichi Dockyard ended its management agreement and decided to exit its majority stake in late 2024, CDPLC sought a strategic investor. The board considered proposals from nearly 40 overseas companies before selecting MDL, citing its financial capacity, technical expertise, and proven track record in both naval and commercial shipbuilding.
MDL's investment is expected to provide fresh capital to CDPLC, support working capital needs, and facilitate access to refund guarantees for new shipbuilding contracts. The structure of the deal also includes safeguards for minority shareholders.
Colombo Dockyard anticipates that the partnership will strengthen technical capabilities, integrate operations more closely with Indian supply chains, and open opportunities for regional and global shipbuilding and repair projects. The company will maintain its brand identity and retain its workforce while improving operational efficiency and access to contracts.
This acquisition reflects MDL's strategy to expand beyond India, leveraging its expertise in naval and commercial shipbuilding to support regional shipyard operations. By becoming a major shareholder in Colombo Dockyard, MDL positions itself to play a significant role in enhancing maritime collaboration between India and Sri Lanka, while tapping into strategic maritime routes for regional trade and services.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
