BAE Systems Announces Proposed Sale of Holding in LSSA
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 percent interest in the LSSA business, as well as the sale by DGD Technologies (2001) Proprietary Limited of its 25 percent stake in the business.
“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”
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“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,” said Erwin Bieber, president of BAE Systems, Inc.’s Platforms & Services sector.
LSSA is a South African company jointly owned by BAE Systems (75 percent) and DGD Technologies (2001) Proprietary Limited (25 percent). The business employs approximately 500 people and specializes 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.
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Source : BAE Systems PLC (LSE: BAES.L)