The satellite company's trustees will now file a notice of termination of the business rescue process.
The cash to pay half of the Department of Science and Technology's purchase of Sunspace has been appropriated from other areas
Denel's pending launch of a new satellite is SA's first major move forward since SumbandilaSat was put into space four years ago.
Half of the purchase price, of R55 million, has been paid by the Department of Science and Technology.
The state-owned defence and aerospace company expects to reap synergies on the back of talent gained from the defunct Sunspace.
Absorbing Sunspace into government should be wrapped up by year-end, says the Department of Science and Technology.
Most of the staff will move to a new unit to be created within Denel Dynamics.
If substantial investors have declined to become shareholders in space manufacturing, taxpayers shouldn't be forced to, says the DA.
A decision whether to acquire a majority stake in the satellite company will only be made at the end of the month.
SA is working to develop its capabilities in earth observation, communication, position, timing, and navigation.
Launch delays and physical complications led to only one experimental payload being operated by the satellite.
SA is richer for the social benefit, intellectual property and experience gained from the second national satellite.