Grintek`s share closed 30c or 21.4% higher at 170c yesterday after news that the group might be bought out.
Grintek published a cautionary notice saying it had been informed that Swedish group Saab is considering making an offer to buy the shares in Grintek it does not own.
The offer would not include the shares held by Kunene Finance Company and Kunene Technology Investments.
The offer price being considered is R1.70 per Grintek share. The share closed at R1.40 on the JSE yesterday, up 2c from the previous close.
Saab is already a Grintek shareholder, having bought a 21.1% stake in the group early this year. Kunene Bros Holdings is a 30% shareholder.
At R1.70 per share, the stake that Saab does not already own is worth about R245 million.
Grintek and Saab are also partners in joint venture Grintek Integrated Defence Solutions.
Grintek is a contractor and supplier of electronic-related products and services to the telecommunications, mining, avionics, defence, air traffic control, security and power utilities markets.
The group achieved revenue of R1.41 billion for the year to end-June, with after-tax profit of R96.35 million.
This morning the Grintek share was trading at 173c, up 3c or 1.8% from yesterday`s close.
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