Saab move sets up Grintek for future delisting
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Kunenes want partnership with Swedes
Trade and Industry Editor
THE acquisition by Swedish defence group Saab of a 21,2% stake in domestic technology group Grintek may be the first stage towards an eventual delisting of the firm, Grintek chairman Zoli Kunene predicted yesterday.
He said even if it was still some way off, his ideal scenario would be for Grintek to have just two shareholders Saab and his Kunene Bros empowerment group. He said his family business had lowered its stake in Grintek from 33% to 25% by selling a share block to Saab, but he hoped in future the empowerment body's share would climb again.
Saab also gained shares from a direct investment in Grintek of R35m and by purchases on the open market.
"This has to be a good deal for Saab Grintek is in areas where there will be good growth," said Kunene. "Kunene Bros will use the money we receive to pay off debt, and this ensures our investment in Grintek is debt-free. Grintek is an excellent investment."
The Saab investment qualifies as an offset project under the controversial multibillion rand state arms deal, and is linked to SA purchases of Gripen fighter aircraft from Sweden.
"For Saab, this investment is a clear demonstration that we are in SA to stay," said Saab executive director Kjell Möller.
"Besides our commitment to supporting the Gripen, we have a long-term strategy which will see Grintek and SA increasingly become key elements of our global hi-tech business," said Möller.
Saab hopes its partnership with Grintek will open up new markets for its products in developing nations such as Brazil and India, with which SA has good economic relations.
Kunene said the Saab investment came "at just the right time" as the SA company was busy expanding its international operations.
Grintek will be able to benefit from Saab's international sales and marketing infrastructure, and from research and development spin-offs as well.
Möller said Saab would win a presence on the Grintek board and in management after the investment.
Saab senior vicepresident for operations Kenth-Ake Jönsson said there were many areas of synergy and of potential cooperation with Grintek. Defence control systems and telecommunications are likely to be of immediate interest, with Swedish knowhow being transferred to SA.
Government has identified the aero- space sector, in which Grintek has a big involvement, as one of the most important growth sectors in future. The latest Saab investment, of more than R100m, has been welcomed by government as a contribution to that development, as well as boosting SA's export potential.
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