Minister Alec Erwin of the appointment of Shaun Liebenberg as the new CEO of Denel.
Today's announcement by Public Enterprises Minister Alec Erwin of the appointment of Shaun Liebenberg as the new CEO of Denel has the support of defence and telecommunications manufacturer Grintek and its key shareholders, Kunene Bros. Holdings and SAAB AB.
Mr Liebenberg's departure after a relatively brief, but successful tenure as CEO of Grintek is an immediate and significant loss for the company. But Grintek and its key shareholders are of the view that it is in South Africa's national interest and in the interest of the country's high-tech economy, of which Grintek is part.
Measures have been initiated to ensure a smooth transition to a capable successor within a reasonable timeframe. Mr Liebenberg will continue at the helm of Grintek until taking up his new position at Denel on June 1, 2005. In doing so, he will continue to support the buyout of minority shareholders and the delisting currently underway.
Mr Liebenberg's departure will not affect the process currently approaching completion whereby SAAB proposes to buy out minority shareholders in Grintek as a precursor to the company becoming a privately held partnership between Kunene Bros. Holdings and the wholly owned local subsidiary of the Swedish manufacturer. The buyout of minority shareholders and the delisting of Grintek will lead to the company's further integration with SAAB AB of Sweden for purposes of technology investment and exchange, international marketing, and worksharing.
The departure of Mr Liebenberg "is a necessity when seen in the context of the industry as a whole, and will hopefully contribute to growth and stability which benefits us all," said Grintek chairman Zoli Kunene.
"Viewed together, Shaun Liebenberg's move to Denel and the closer integration of Grintek and SAAB AB will strengthen the South African defence and high tech sectors, which are important providers of highly skilled jobs," said SAAB South Africa CEO Per Erlandsson.
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Grintek Limited is a leading empowerment technology group listed on the JSE Securities Exchange of South Africa and employs some 1400 people, most of whom are engineers and technicians. The group, which has Kunene Brothers Holdings (KBH) as its major shareholder and business partner, specialises in three main market segments, namely telecommunications and selected niche opportunities within industrial and defence electronics. The core competencies of the group are founded in its strong technology base. This strength enables the group to develop internationally competitive products, provide world-class partnerships in the southern African region and add engineering value through customisation, integration and technical support. Turnover for the financial year to June 2004 was R 1.4-billion.
Saab AB
Saab is one of the world's leading high-technology companies, with its main operations focusing on defence, aviation and space. It is the manufacturer of the Gripen, the first fourth generation fighter jet to be fully operational. The aircraft has been ordered by the South African, Swedish, Czech, and Hungarian air forces, and is a contender in a number of other countries. The group covers a broad spectrum of competence and capabilities in systems integration.
Saab is one of Northern Europe's largest exporters, with over 41% of its turnover generated through export sales. Saab has partnership and collaborative relations with a number of global companies, including Airbus on the A380 Super-jumbo programme, Ericsson, Volvo-Aero, General-Electric and BAE.With turnover of SEK 17,85 bn (around R 15.39 bn ) the company employs 11 936 people.
Kunene Bros Holdings
Kunene Bros Holdings (Proprietary) Limited (KBH) was incorporated in July 1994 as an "active ownership" business with diversified interests. All five Kunene brothers have joined the full time employment of the company as active owners enabling KBH to provide a range of services to group companies. In 1994 Kunene Finance Company (KFC) was established for the purpose of raising medium to long term finance to fund the Group's investment program. KFC is controlled by KBH in partnership with six financial institutions. KFC is a diversified holding company.