African Equity Empowerment Investments (AEEI) Limited has completed the R125 million deal to acquire a 25 percent plus one share stake in Saab Grintek Defence (SGD), the South African subsidiary of Swedish Defence and Civil Security Company, SAAB.
AEEI Group CEO, Khalid Abdulla, announced in May that the company’s negotiations for a substantial stake in Saab GD was at an advanced stage and stated that this major deal has now been concluded.
“I am proud to confirm AEEI’s investment into Saab GD with its acquisition of 25 percent plus one share in Saab’s largest operation outside of its headquarters in Sweden. The investment, acquired for R125 million, re-affirms AEEI as being a significant partner of choice to multinationals. This is an important breakthrough for both companies, which will add value, job creation, alleviate poverty and contribute to finding solutions in South Africa and African regional security”, Abdulla said today when making the announcement.
Chairman of Saab Grintek Defence, Micael Johansson says, “The acquisition highlights our commitment to partnering with South Africans to help boost the country’s future growth and development. Our position as a leading Civil Security and Defence Company in the African region, together with our excellent export results enables us to build on existing Swedish and South African technology using valued local talent to develop world-class solutions”.
Saab and AEEI have a good working relationship and have seen lots of synergies, value-add and a fair amount of growth over the past 4 to 5 years.
Close to 75% of the total turnover at Saab Grintek Defence is generated through export. In 2013 and 2014, SGD was awarded the Best Exporter Award by SA Premier Business Awards, which recognises the spirit of success, innovation and good business ethics in the economy. Saab Grintek Defence’s export order book has increased significantly and is expecting good growth over the next few years.
“I am confident that AEEI is exceptionally well-positioned with enhanced investment strategies, more intellectual capital and additional avenues for value creation than at any point in our history. Investing in SGD makes good business sense for AEEI and Saab Grintek
Defence and there is potential for synergies with other companies in its strategic investment portfolio”, stated Abdulla.
Saab’s position as a leading defence and civil security 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.
The South African market has been ready for this monumental shift in business strategy, especially amongst Black Economic Empowerment businesses. AEEI is currently the top empowerment company in the country and is energetically forging ahead with innovative thinking and business practices, building on its strategy by venturing into new territories and investment sectors.
AEEI has a diverse portfolio of investment sectors including strategic investments in British Telecom Communication Services South Africa, Pioneer Food Group, Sygnia Asset Management and Saab Grintek Defence. It also invests in food & fishing, technology, health care, events & tourism and Biotherapeutics.
“Our diversified portfolio enables us to provide and maintain high quality services, products and well established infrastructures, as well as being a credible partner of choice to many businesses, especially those with growth prospects into Africa and abroad,” Abdulla concluded.