11th Aug 2014 12:01
LONDON (Alliance News) - BAE Systems PLC Monday said that it has reached an agreement for the sale of its stake in BAE Systems Land Systems South Africa Proprietary Ltd to Denel (SOC) Ltd, subject to closing agreements and regulatory approvals.
The deal includes the sale of BAE Systems' 75% stake in the Land Systems South Africa Proprietary business, as well as DGD Technologies (2001) Proprietary Ltd's 25% stake, for ZAR855.0 million.
"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," Erwin Bieber, President of BAE Systems, Inc.'s Platforms & Services sector, said in a statement.
Land Systems South Africa 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.
BAE said it expects the proposed sale transaction to close during the fourth quarter of 2014.
BAE shares were Monday quoted up 1.5% at 427.80 pence.
By Samuel Agini; [email protected]; @samuelagini
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