SAAB sells its Grintek Ewation share to Cassidian


SAAB has sold its 42.4% share in South African electronic warfare system company Grintek Ewation to Cassidian, the defence and security division of EADS. SAAB says the transaction will generate a capital gain before tax of approximately 120 million Swedish Krona (about R131 million).

“Saab and Cassidian have been partners in Grintek Ewation since December 2001 with the aim to jointly develop the company into a leader in communications electronic warfare systems. Cassidian is the largest owner in Grintek Ewation,” SAAB says in a statement released this morning, owning some 45% of the business. The other 12.6% is held by the black-empowerment firm Kunene Finance Company.
“Grintek Ewation is a successful company and has been a profitable investment for SAAB. Going forward we believe that the continued growth of the company will benefit from having a more coherent ownership structure. Our business relationship with Grintek Ewation will continue”, says Riaz Saloojee, CEO SAAB South Africa and member of the Board of Directors of Grintek Ewation.

South Africa is SAAB’s largest operation outside Sweden with more than 1100 employees. Salojee adds “South Africa is still a prioritised market” for the company. Grintek Ewation is believed to employ some 250 South Africans.

SAAB adds the transaction still needs approval from, among others, the South African competition authorities and is expected to be concluded in second quarter of 2011.