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Fact file: Denel disposals and strategic partnerships: 2006-2009

The following from the written answer by the Department of Public Enterprises to a a question by Freedom Front Plus MP Pieter Groenewald and tabled in April 2010:

Regarding the strategic partnerships, note that “golden share agreements” are in place to protect alienation of assets and technology, to prevent the removal of the business from South Africa and to ensure security of supply to the SANDF.

 






Disposals: 2006 to 2009

 

2006

Entity/Asset

Buyer

Comments

Price

Irenco (Pty) Ltd (plastics business)

Venture Otto SA (Pty) Ltd

Non-core & loss making

R6 000 000

Observer Technologies (business unit of Irenco)

Meridean Commercial and Industrial (Pty) Ltd

Non-core & loss making

R2 480 000

Voltco (business unit of Denel Optronics)

Keliza Outsourced Services Group (Pty) Ltd

Non-core

R3 500 00

Dendustri (division)

Macdonald Steel SA (Pty) Ltd

Non-core

23 000 000

Ariviakom (Pty) Ltd

Eskom & Transnet

Non-core. Denel’s shareholding of 22.98% was disposed of

R130 000 000

 

2007

Entity/Asset

Buyer

Comments

Price

Property portfolio of Bonaero Park (Pty) Ltd

Public Investment Corporation

Non-core property

R230 000 000

 

2008

Entity/Asset

Buyer

Comments

Price

Specialised Protein Products (Pty) Ltd

Neosho Trading (pty) Ltd

Non-core & loss making

R21 100 000

Denel Optronics - PCB

ENCEE Engineering (Pty) Ltd

Non-core

R1 380 208

Denel Optronics – Machine shop

Micromax (Pty) Ltd

Non-core

R5 350 000

Villa Valencia Unit 27, Kempton Park

Transglobal Cargo (Pty) Ltd

Non-core property

R530 000

PMP Pretoria West property

Silver Meadow Properties 142

Non-core property

R35 786 000

Property portfolio of Bonaero Park (Pty) Ltd

Engen filling station property, Castle Walk

Engen

Non-core property – portion excluded from PIC transaction

R2 300 000

Astro Park campus (properties adjacent to OR Tambo International Airport)

ACSA (Airports company of South Africa)

Non-core

R606 000 000

 

2009

Entity/Asset

Buyer

Comments

Price

Farm Hangklip, Koegelberg (near Pringle Bay)

South African Army Foundation

Non-core property

R3 000 000

Cosource (Pty) Ltd

Mbosha (Pty) Ltd, RevelWare (Pty) Ltd and senior management of Cosource

Non-core & loss making. Denel’s remaining 51.7% shareholding was disposed of

R5 000 001

 

 

 

Strategic partnerships: 2006 to 2009

 

Business Entity

Equity partner

Comments

Denel Shareholding after transaction

Date

Aerostructures manufacturing facility that was part of Denel Aviation.

New company formed: Denel Saab Aerostructures (Pty) Ltd

(also known as DSA)

Saab AB

Shareholding: 20%

Saab AB (Sweden) acquired a 20% share in the newly formed company in exchange for an investment of R66m in DSA.

 

A golden share agreement is in place to protect alienation of assets & technology and to ensure security of supply to the SANDF.

80%

2007/08

Denel Optronics - Optronics business

New company formed: Carl Zeiss Optronics (Pty) Ltd

Carl Zeiss GmbH

Shareholding: 70%

Denel Optronics was loss making and had a negative value. Denel retained 30 shares whilst 70 of 100 shares were sold to Carl Zeiss. Zeiss further contributed to the business through investing in a new plant, training and development of new products. Due to the new business relationship, Carl Zeiss Optronics (Pty) Ltd received additional export orders and technologies were transferred. As a result of this the business has turned around.

 

A golden share agreement is in place to protect alienation of assets & technology, to prevent removal of the business from the RSA and to ensure security of supply to the SANDF.

30%

2007/08

Denel Munitions divisions

New company formed: Rheinmetall Denel Munition (Pty) Ltd

(Also known as RDM)

Equity partnership. Rheinmetall Waffe Munition GmbH

Shareholding: 51%

Denel Munitions was loss making and had a negative value. Denel retained a 49% shareholding in the new company and 51% of 100 shares were issued to Rheinmetall. Between 2008 and 2010, Rheinmetall has invested in the modernisation of plant and equipment. Rheinmetall is also contributing significantly to the business through increased export earnings and technology transfer. This business has turned around.

 

A golden share agreement is in place to protect alienation of assets & technology, to prevent the removal of the business from the RSA and ensure security of supply to the SANDF.

49%

2008/09

 



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