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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 ...

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