JSE listed, African Equity Empowerment Investments Limited (AEEI), formerly Sekunjalo Investments Limited today announced an inspiring and significant transaction by acquiring a substantial 25% plus one share in the local operations of SGD, the Swedish Civil and Defence giant.
AEEI acquired the stake for R120 million and this re-affirms AEEI as being the partner of choice to multinationals.
CEO of AEEI, Khalid Abdulla said, “It has always been part of the company’s growth strategy to become an empowerment partner of choice to multinationals due to our credibility, expertise and credentials built up over the years. We are exceptionally proud to have increased our stake within the Saab Group through SGD.”
Abdulla continues, “This additional acquisition is an important breakthrough for both AEEI and Saab for its growth plans within South Africa, Africa and abroad by adding value, creating jobs, alleviating poverty and finding solutions in the global market.”
AEEI has a good working relationship with Saab and the companies have had a fair amount of growth over the past 4 to 5 years of consistently working together through synergies and value-adding strategies.
SGD’s export market represents almost 75% of the South African company’s total turnover. The Department of Trade and Industry, in partnership with Proudly South Africa and Brand South Africa, awarded SGD the Best Exporter Award by the SA Premier Business Awards in both 2013 and 2014. The award recognises the spirit of success, innovation and good business ethics in the economy.
“We are confident that our investment in Saab will open many more doors for opportunities across the continent, the globe and especially BRICS, with the prospect of further exploring AEEI and Saab’s capabilities in the technology sectors and in new markets,” says Abdulla.
There is no doubt that this partnership is set to increase Saab and AEEI’s shareholder value and will continue to benefit both companies into the future.
Leif Karlsson, Acting CEO of Saab Grintek Defence said, “We are proud to have AEEI as a strategic partner and we see this agreement as further strengthening our commitment to the industrial growth and prosperity of South Africa while at the same time supporting our endeavours to supply security solutions in Africa”.
The African economy and market is ready to receive South African companies with their growth strategy into the continent. AEEI is considered the top empowerment company in the country and is energetically forging ahead with innovative thinking and business practices, building on its growth strategy by venturing into new territories and business sectors.
Saab’s position as a leading civil security and defence company in the African region has capabilities ranging from electronic warfare, sensor technology; command and control systems; training systems; radio communication, aviation and support solutions.
Abdulla concludes, “This deal demonstrates Saab’s commitment to the South African economy, business and communities and will provide further opportunities for both parties to accelerate their growth, especially in the technology sector.”
Saab is one of three investments under the AEEI Group’s strategic investments arm, which proves the Group’s appetite for further growth and having in the past finalised similar transactions with British Telecoms SA and Pioneer Foods, which have all generated consistent growth for all stakeholders.