AEEI scores with increased 25% stake in Saab Grintek Defence
AFRICAN Equity Empowerment Investments (AEEI) — previously Sekunjalo Investments — on Tuesday confirmed earlier speculation in Business Day that it would increase its stake in security and defence specialist Saab Grintek Defence (SGD) to 25%.The deal, valued at R120m, looks attractive for AEEI with guaranteed annual dividends of R18m from SGD for the first five years. This appears to mimic a similar (and lucrative) arrangement AEEI holds in its empowerment investment in British Telecoms SA.The SGD deal also comes shortly after the Swedish company clinched a sizeable contract with the Indian Defence Force.Defenceweb, the defence news portal, reported that SGD had received orders worth more than $78m (R900m) for self-protection systems for Indian army and air force helicopters.AEEI has enjoyed a relationship with SGD since 2010, when it acquired a 5% stake in holding company Saab South Africa along with an option to increase the stake to 25%.The mechanics of the new deal entails AEEI ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.