Saab divests ownership share in Grintek Ewation

Aerospace and defence company Saab has signed an agreement to divest its ownership share of 42.4 per cent in South African system engineering company Grintek Ewation to Cassidian, the largest owner in the company and a division of EADS.

Saab and Cassidian have been partners in Grintek Ewation since December 2001 with the aim to jointly develop the company into a leader in communications electronic warfare systems.

South Africa is Saabs largest operations outside Sweden with more than 1,100 employees and is still a prioritised market for Saab.

The transaction, which will generate a capital gain before tax of approximately SEK120m (£11.7m), is pending approval and is expected to be concluded in the second quarter of 2011.