Electronics Production |
Grintek accept Saab offer
Saab acquire another 49% of South African EMS provider Grintek Ltd and becomes majority shareholder with a total of 70,3% in Grintek Ltd. The finalization of the buyout expected to be ready by mid-May.
Minority shareholders, including significant institutional investors such as Old Mutual, Investec and Sanlam, accepted Saab’s revised offer of R 2 per share. Saab will acquire all of the Grintek shares that it does not already own other than the 29,7% shares, held by Kunene Finance Bros Holdings. The total sale is estimated to R 344 million. The offer is subject to conditions precedent including the Competition Commission which was granted last Friday. The deal is likely to be formalized in mid-May 2005.
“For Saab this investment is the clearest possible signal that we have great confidence in South Africa's economy and in the country's future. And it says that we are here to stay. Under the private partnership made possible by the buyout, Saab and Grintek will forge closer working relationships locally and internationally. This will encourage and facilitate skills and technology transfers and joint product research and development, as well as combined international marketing initiatives”, said Saab South Africa Pty Ltd CEO Per Erlandsson.
“Grintek has a significant role in helping to shape a sustainable future for the high technology, communications, and defence sectors in our country, and this transaction will help the company leverage international opportunities while growing South African exports and local skilled jobs through greater access to worldwide markets. It represents a massive vote of confidence not only in Grintek, but also in the future of South Africa and of this industry segment,” said Grintek chairman Zoli Kunene.
Grintek Ltd is a manufacturer and supplier of electronics related products and services to the telecommunications, defence, mining, avionics, air traffic management, security and power utilities markets in South Africa and selected export markets. The group is currently listed on the Johannesburg Securities Exchange and employs some 1300 people, a large percentage of whom are engineers and technicians. Turnover for the financial year to June 2004 was R 1.4-billion.
