African Equity Empowerment Investments (AEEI) announced on Thursday that it has completed the R125m deal to acquire a 25% plus one share stake in Saab Grintek Defence (SGD).
SGD is the South African subsidiary of Swedish defence and civil security company, Saab and the group's largest operation outside of its headquarters in Sweden.
AEEI group CEO Khalid Abdulla said the investment reaffirms 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,” said Abdulla.
“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 SGD and there is potential for synergies with other companies in its strategic investment portfolio.”
For Micael Johansson, chair of SGD, the acquisition highlights its commitment to help boost SA’s future growth and development by means of local partnerships.
Close to 75% of the total turnover at SGD is generated through export. In 2013 and 2014 SGD was awarded the Best Exporter Award by SA Premier Business Awards.