Saab AB has signed an agreement to divest its ownership share of 42.4 per cent in South African system engineering company Grintek Ewation to Cassidian, a division of EADS. The two companies became partners in Grintek Ewation in December 2001, with the aim to jointly develop the company into a leader in communications electronic warfare systems. Cassidian is the largest owner in Grintek Ewation.
The transaction is pending approval from, among others, the competition authorities of South Africa and is expected to be concluded in the second quarter of 2011. The transaction will generate a capital gain before tax of approximately SEK 120 million. South Africa is Saab's largest operations outside Sweden with more than 1,100 employees and remains a prioritized market for the company.
Riaz Saloojee, CEO Saab South Africa and member of the Board of Directors of Grintek Ewation, said, “Grintek Ewation is a successful company and has been a profitable investment for Saab. Going forward we believe that the continued growth of the company will benefit from having a more coherent ownership structure. Our business relationship with Grintek Ewation will continue.”