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AFRICAN EQUITY EMPOWERMENT INVESTMENTS LIMITED - Conclusion Of The Acquisition Of 25% Plus One Share Of The Issued Share Capital Of Saab Grintek Defence Proprietary

Release Date: 26/11/2015 10:30
Code(s): AEE     PDF:  
Wrap Text
Conclusion Of The Acquisition Of 25% Plus One Share Of The Issued Share Capital Of Saab Grintek Defence Proprietary

African Equity Empowerment Investments Limited
(Formerly Sekunjalo Investments Limited)
(Incorporated in the Republic of South Africa)
Registration number 1996/006093/06
Share code: AEE
ISIN: ZAE0000195731
("AEEI" or “the Company”)

CONCLUSION OF THE ACQUISITION OF 25% PLUS ONE SHARE OF THE ISSUED SHARE CAPITAL
OF SAAB GRINTEK DEFENCE PROPRIETARY LIMITED

1.   The Transaction

     Shareholders of the Company are referred to the SENS announcement dated 19 May 2015
     (“Announcement”) and are hereby advised that the Company has finalised the respective transaction
     in terms of which:

     1.1      the Company will dispose of its entire shareholding in Saab South Africa Proprietary Limited
              (“Saab”), comprising 313 “B” shares and 59 “C” shares, being an effective 5% shareholding
              for a purchase consideration of R20 million;

     1.2      a ring-fenced special purpose vehicle, a consortium that is 60% owned by AEEI, acquired 25%
              plus one share of the issued share capital of Saab Grintek Defence Proprietary Limited
              (“SGD”), which shares are “A” shares for an amended purchase consideration of R125 million
              compared to the purchase consideration of R120 million included in the Announcement;

     1.3      the lock-in and put option periods have been amended to a 7 year period compared to the 5
              year period included in the Announcement; and

     1.4      all conditions precedent have been met and the transaction is now concluded. All other
              significant terms remain as previously communicated in the Announcement,

              hereinafter referred to as “the Transaction”.

2.   Rationale for the Transaction

     AEEI is firmly established as the pre-eminent empowerment group in South Africa. Our current
     partnership with Saab has enabled us to increase our indirect shareholding to a 25% plus one share in
     their operating subsidiary, SGD.

     The Transaction is in line with the Company’s strategy of becoming the empowerment partner of choice
     to multinationals in key sectors including civil security and defence by adding value, job creation,
     alleviating poverty, finding solutions in South Africa, Africa and the globe.

     There is no doubt that this partnership is set to increase AEEI’s shareholder value and is in line with
     our strategic focus to grow within South Africa, Africa and abroad and is in line with the Group’s Vision
     2020 Vision strategy.

Cape Town
26 November 2015

Sponsor and corporate adviser
PSG Capital

Legal adviser
Webber Wentzel

Date: 26/11/2015 10:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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