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AEEI special purpose vehicle eyes 25% plus 1 in Saab subsidiary

AEEI special purpose vehicle eyes 25% plus 1 in Saab subsidiary

Photo by Reuters

19th May 2015

By: Creamer Media Reporter

  

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JSE-listed African Equity Empowerment Investments (AEEI) plans to dispose of its 5% stake in Saab South Africa for R20-million, while AEEI’s 60%-owned ring-fenced special purpose vehicle (SPV) AEEI Newco will pay R120-million to acquire 25% plus one share of Saab subsidiary Grintek Defence (SGD).

AEEI, formerly Sekunjalo Investments, would sell its entire shareholding in Saab, comprising 313 B shares and 59 C shares, injecting the proceeds into Newco’s acquisition of shares in SGD.

The balance of the purchase consideration would be paid partly in cash by AEEI Newco and partly through a preference share funding arrangement in terms of which Investec Bank will subscribe for preference shares in AEEI Newco.

“The acquisition is in line with the company’s strategy of becoming the partner of choice to multinationals in key sectors, including civil security and defence by adding value, job creation, alleviating poverty and finding solutions in South Africa and the continent,” AEEI said in a statement.

The deal, which was expected to be completed in June, would increase AEEI’s shareholder value and was aligned with the group’s strategy to grow within Africa and abroad.

Edited by Creamer Media Reporter

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