State-owned shipbuilding major Mazagon Dock Shipbuilders Ltd. which plans to acquire a controlling stake in Colombo Dockyard PLC is looking at a debt-free turnaround of the Sri Lanka-based company in the next five years.The deal, which marks its first international acquisition, is valued at up to $52.96 million, according to a company statement released on Thursday.Speaking to NDTV Profit, Biju George, director (shipbuilding) at Mazagon Dock, said the move aligns with the company’s strategic growth plans. While Colombo Dockyard is undergoing financial distress at the moment, Mazagon Dock anticipates its full turnaround and debt-free status within five to six years, according to George.“We are not walking blindfolded into this acquisition. But considering the business potential…and the strategic location in which they are placed can give more revenue from the repairs itself. So, we see a turnaround, maybe in the next five to six years, that we can completely transform into a debt-free company,” George said.BHEL Share Price Gains After Rs 6,500-Crore Contract Win From Adani PowerThe deal will come at approximately Rs 452 crore in an all-cash transaction, with the investment structured through a combination of primary subscription and secondary share acquisitions. This marks the first-ever instance of an Indian shipbuilding company acquiring a foreign shipyard. The development was first announced by the company in a corporate filing on June 27.The acquisition deal is expected to be completed within four to six months. The acquisition will strengthen the state-owned company’s position in the ship repair and shipbuilding while enhancing its market reach.Expressing confidence over the growth prospects post-acquisition, George highlighted that Colombo Dockyard heavily benefits from its strategic location. “It is located just about 76 nautical miles from the international shipping lanes that connect the Middle East with East Asia. Colombo Dockyard sits at the intersection of numerous shipping routes. Its current order book exceeds $50 million and it has a pipeline of orders worth around $300 million,” he noted.V2 Retail’s Rs 6,500 Crore Turnaround: How Founder Ram Chandra Agarwal Rebuilt From BankruptcyThe company’s financials saw a downturn in starting 2019 "because of two or three black swan events, which hit the company very badly".The 2019 Easter bombing, the economic crisis in Sri Lanka and all this added to the volatility of the shipbuilding market globally, George explained.However, Mazagon Dock sees this acquisition as an opportunity to leverage complementary capabilities between the two yards. The acquisition is expected to create operational synergies and drive a long-term turnaround.“Our acquisition aims to unlock operational synergies by combining our extensive experience with their niche capabilities. This cross-fertilisation of diverse strengths creates a very robust business proposition that we are confident will drive success moving forward,” George noted.Shares of Mazagon Dock Shipbuilders rallied as much as 2.32% to hit an intraday high of Rs 3,247.9 apiece on the NSE on Monday. The stock, however, pared some of its early gains to trade 1.7% higher at Rs 3,228 apiece at 10:39 a.m., compared to a 0.29% drop in the benchmark Nifty50 at 25,563.4.. Read more on Business by NDTV Profit.