BAE Systems has announced it has reached an agreement for the sale of its BAE Systems Land Systems South Africa Proprietary Limited (LSSA) business to Denel (SOC) Limited (Denel), a South African government-owned defence manufacturer in the air and land domains. The transaction includes sale by BAE Systems of its 75 percent interest in LSSA, as well as sale by DGD Technologies (2001) Proprietary Limited of its 25 percent stake in LSSA.
“This proposed sale will further shape our portfolio around our core capabilities in tracked, combat and amphibious vehicles and weapon systems, which represent markets where we possess strong franchise positions and discriminating capabilities,” stated Erwin Bieber, president of BAE Systems, Inc.’s Platforms & Services sector.
“We also recognise that the LSSA employees have made a significant contribution to BAE Systems over the last 10 years, and we believe that transitioning ownership to Denel will better position the LSSA business to achieve its full potential working with a strong South African company.”
BAE Systems Land Systems South Africa had recently secured a contract from Denel Land Systems under the 8×8 armoured wheeled vehicle programme, to provide commander and gunner sights
The LSSA business, a joint venture between BAE Systems Land Systems (Investments South Africa) Limited (75 percent) and DGD Technologies (2001) Proprietary Limited (25 percent) has comprised three business segments employing approximately 500 people. The LSSA business specialises in the design and manufacture of military tactical-wheeled vehicles, mechanical driveline products, precision-machined components and gears, fire directing systems, and remote weapon launching platforms, subsystems and products.
Riaz Saloojee, Chief Executive Officer of Denel added, “This proposed acquisition is in line with our company’s strategy to broaden our leading land system solutions through the addition of resources and assets, such as those of LSSA, which complement our capabilities in the design and integration of combat turrets, artillery and infantry systems and armoured vehicles.”
The proposed sale of the LSSA business is conditional upon receiving certain regulatory and other approvals. Thus, we anticipate the proposed sale to close during the fourth quarter of 2014.
BAE Systems Land Systems South Africa had recently secured a contract from Denel Land Systems under the 8×8 armoured wheeled vehicle programme, to provide commander and gunner sights.