GRINTEK LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1955/000013/06)
("Grintek")
GRINTEK ENTERS NEW PARTNERSHIP WITH SAAB
1. INTRODUCTION
In line with Grintek's strategy to internationalise its defence business,
Grintek has concluded a new agreement with SAAB AB of Sweden ("SAAB") in
terms of which SAAB will acquire a 49 per cent interest in a new division,
Grintek Communication Systems, to be formed with effect from 1 July 2001 by
the amalgamation of two existing divisions of Grintek Group Limited,
("GGL"), a wholly owned subsidiary of Grintek, namely Grintek Comms and
Grintek Electronics Systems ("the transaction").
2. TERMS OF AGREEMENT
The legal entity to be used for the transaction will be Avitronics
(Proprietary) Limited which is currently 51per cent owned by Grintek and 49
per cent owned by SAAB. The company will be renamed from Avitronics
(Proprietary) Limited to Grintron (Proprietary) Limited ("Grintron").
Grintron will then have two operating divisions, Avitronics, specialising in
radar and electro-optic systems and Grintek Communication Systems,
specialising in communication systems and products for defence,
peacekeeping, policing and security applications
3. RATIONALE FOR THE PARTNERSHIP
Following the successful international cooperation between Grintek's
Avitronics business unit and SAAB since February 1999 the new partnership
further strengthens the opportunities for the two parties to cooperate in
specialised communication systems and products. Synergies will result from
combining SAAB's conceptual understanding of network centric command,
control and information systems with Grintek's understanding and expertise
in the communications' domain.
4. FINANCIAL EFFECTS OF THE TRANSACTION
The transaction will not have a material effect on the earnings per share or
net asset value of Grintek in the short term, however, it is expected that
the transaction will generate benefits in the medium to long term.
PRETORIA
18 June 2001
Sponsor Corporate law advisors & consultants
Investec Securities Deneys Reitz Attorneys
Reg no. 1984003385/21
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
