Swedish group Saab is to acquire not less than 21.2% of JSE-listed technology group Grintek, strengthening their existing relationship.
The deal will provide Grintek with a cash injection of R36.5 million, improving its cash position and strengthening its balance sheet.
Grintek and Saab are partners in joint venture Grintek Integrated Defence Solutions.
Grintek says Saab will acquire not less than about 62.34 million shares, including 22.81 million shares held as treasury shares by a wholly owned subsidiary, Grintek Group. Saab will also acquire an additional 39.53 million shares from third parties.
"The strategic investment by Saab will enhance the existing relationship between Grintek and Saab by exploiting other areas of the business common to both, such as telecommunications and industrial electronics," Grintek says.
"Saab`s entry as a significant active shareholder sets the stage for further expansion by Grintek into world markets where Grintek has proved that it has a range of competitive high-technology products for civilian and defence use."
The deal is subject to the approval of shareholders of the necessary resolutions.
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