BAE Systems Monday said it has an agreement for the proposed sale of its holding in BAE Systems Land Systems South Africa Proprietary Limited (LSSA) to Denel (SOC) Limited for about $80 million.
Photo: BAE Systems
The adjustments include the sale by BAE 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,” said Erwin Bieber, president of BAE Systems, Inc.’s Platforms & Services sector.
LSSA is a South African company jointly owned by BAE (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.