Saab acquire 21% in Grintek - New Saab investment in Grintek to boost
South African exports in high-tech sector
Swedish technology group, Saab AB, has secured a 21,2 percent stake in
Centurion-based Grintek Ltd, in a transaction that will boost South
African high-technology development, manufacturing and exports.
Valued at over R100 million, this new direct foreign investment is
linked to Saab's Industrial Participation obligations stemming from
South Africa's purchase of Gripen advanced fighter aircraft. It shows
government's strategy of leveraging long-term international alliances
and global market access for South African companies from the strategic
defence procurement programme is working.
"Saab's entry as a significant shareholder sets the stage for further
expansion into the world market, where Grintek has already proved that
it has a range of very competitive high-technology products for civilian
and defence use," said Grintek chairman Zoli Kunene. "This investment
not only consolidates our technology and marketing partnerships, but
ensures that Grintek further strengthens its relationship with the
global Saab group. It secures an important part of South Africa's
technological future, including high-tech research and development, jobs
Building on the shared experience of their existing partnership within
the defence arena, Saab will become an active shareholder in Grintek Ltd
and has committed to providing support for business development and
international marketing. Saab and Grintek will also co-operate on
developing new skills and technologies.
For Saab, this investment is a clear demonstration that we are in South
Africa to stay," said Saab AB executive director, Kjell Möller. "Besides
our commitment to supporting the Gripen, we have a long-term strategy
which will see Grintek and South Africa increasingly become key elements
of our global high-tech business."
"South Africa's selection of Gripen for its future air defence created
the basis for Saab's relationship with Grintek. Over the past six years
we have broadened our collaboration and we are looking to expand this
relationship at a broader corporate and commercial level," said Möller.
Increasingly, Grintek's current local purchasing is sourced from
economically empowered suppliers through its preferential procurement
policy. The expansion of Grintek's business following the new investment
will have a beneficial knock-on effect for all of these companies.
"Grintek is, and will remain an empowered company. Our most recent
analysis shows that more than 40 percent of our stock is owned by black
shareholders," said Kunene.
He said the new investment "holds considerable potential to build on the
Grintek Group's substantial past investment in technology development
and will enable the Group to grow its turnover and profitability. With
Saab's support, Grintek also anticipates breaking into new markets where
our subsidiaries have developed world-class capabilities".
Notes to editors
Saab already has a 49 percent stake in Grintron (Pty) Ltd, the holding
company for most of Grintek's defence and aerospace businesses. Grintek
Ltd holds the balance of the shares in Grintron.
How the acquisition is structured
Funding of the acquisitions is 100 percent direct foreign investment.
Saab has purchased 22,8 million Grintek treasury shares from Grintek
Group Ltd for R36,5-million, equivalent to 160 cents per share. The
shares acquired from treasury stock represent a direct capital injection
into Grintek Ltd. This represents a premium of approximately 30 % over
the average share price in the thirty days before the agreement was
These shares represent approximately 8,4% of Grintek's current issued
share capital (prior to the issue of the treasury shares).
The balance of the shares making up Saab's strategic investment in
Grintek was secured through a forward sale funding arrangement with the
Kunene Group designed to secure the Kunene Brothers shareholding in
Grintek for the foreseeable future, and through the purchase of Grintek
shares from Nedcor.
About Grintek Ltd
Grintek Ltd is a manufacturer and supplier of electronics related
products and services to the telecommunications, defence, avionics, air
traffic management, security and power utilities markets in South Africa
and internationally. The group is listed on the Johannesburg Securities
Exchange and employs some 1400 people, most of whom are engineers and
About Saab AB
Saab is one of the world's leading high-technology companies, with its
main operations focusing on defence, aviation and space. The Group
covers a broad spectrum of competence and capability in systems
Saab develops, manufactures and delivers advanced products and services
for the defence market, as well as for those commercial markets where
there is a clear demand for its capabilities.
The Group's own strength and strategic partnerships enable it both to
compete and collaborate in international markets.
Saab has the world as its market, but research, development and
production are carried out principally in Sweden. The Group has a total
of approximately 14,000 employees. Total annual sales are SEK 17 billion
(approximately R 17 billion). Research and development corresponds to
about 25 per cent of turnover.
Rose Williams Corporate Communications
Tel: +27 12 672 83 36
Mobile: +27 82 551 34 74
Iréne Svensson Director Corporate Communications
Tel: +46 13 463 0130
Mobile: +46 734 187130
Linden Birns Spokesman for Saab-South Africa
Mobile: +27 82 568 80 31
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download: