BAE Systems and DGD Technologies 2001 are planning to sell their holdings in the Land Systems South Africa defense company to Denel SOC, a state-owned aerospace and defense company in South Africa, for an estimated $80 million.
BAE said Monday that Denel would own LSSA in its entirety as DGD proposed to sell its 25-percent stake in the business alongside BAE’s 75 percent holding.
“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’s platforms and services sector.
DGD and BAE expect to close the transaction in the fourth quarter of this year, pending approvals.
LSSA provides design and manufacturing services on products such as military tactical-wheeled vehicles and fire directing systems.