South Africa has given the go-ahead for the appointment of a negotiating team to finalise the sale of a stake in aerospace and defence manufacturer Denel to British Aerospace. Pretoria reveals that a holding of up to 20% will be sold to the UK company, which it has named as its preferred international partner.
The formation of the team will be the first move in the partial privatisation of Denel, in which a black-empowerment group will also have a stake. Defence, trade and public enterprise ministers Joe Modise, Alec Erwin and Stella Sigcau will co-operate on the appointment of the body. "They are still working out the finer details, but the team will be established with some urgency," the government says.
The restructuring of Denel is under way in the run-up to privatisation, with lawyers and accountants finalising its establishment as a standalone company. Denel's aerospace division will merge with smaller players Advanced Technologies and Engineering and Aerosud, as part of the restructuring.
Source: Flight International