BAE SYSTEMS PLC
BAE Systems - proposed sale of its holding in BAE Systems Land Systems South Africa
11 August 2014
BAE Systems announces an agreement for the proposed sale of its holding in BAE Systems Land Systems South Africa Proprietary Limited (LSSA) to Denel (SOC) Limited. The transaction, for a total cash consideration of approximately 855 million Rand, subject to closing adjustments, includes the sale by BAE Systems of its 75% interest in the LSSA business, as well as the sale by DGD Technologies (2001) Proprietary Limited of its 25% stake in the business.
Erwin Bieber, President of BAE Systems, Inc.'s Platforms & Services sector said: "This proposed divestiture will further focus our portfolio on our core capabilities and strong franchise positions in tracked, combat and amphibious vehicles and weapon systems."
LSSA is a South African company jointly owned by BAE Systems (75%) and DGD Technologies (2001) Proprietary Limited (25%). The business employs approximately 500 people and 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.
The proposed divestiture of LSSA is conditional upon receiving certain regulatory and other approvals. It is anticipated that the proposed sale transaction will close during the fourth quarter of 2014.
Issued by:
BAE Systems plc
London
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