The Department of Public Enterprises today received BAE System's proposal for a strategic equity stake in Denel, the country's leading defence manufacturing company.
Restructuring of the state owned Defence Company is being conducted to provide it with increased access to global markets, extend its manufacturing base in South Africa and facilitate access to skills and technology. BAE Systems was selected as the preferred strategic minority equity partner best able to contribute to those goals after a rigorous assessment of other potential global defence industry partners.
Government anticipates a comprehensive proposal addressing Denel's complex high technology business that will require some time to examine in detail.
It would be premature to speculate on the timing and outcome of the process to conclude this crucial aspect of the restructuring of Denel in this period.
Submission to the Department Of Public Enterprises Of BAE Systems Proposal to Become A Strategic Equity Partenr In Denel