Denel has sold 237ha of land adjacent to OR Tambo International Airport for R606-million to Airports Company South Africa (Acsa), the arms manufacturer said on Thursday.
The sale formed part of a broader plan to re-focus Denel on its core business and to optimise its assets.
”Restructuring the balance sheet has been a high focus area for the group over the past 18 months. In this regard, we are pleased to announce the successful sale of the land to Acsa,” said Denel’s group CEO, Shaun Liebenberg.
In 2005, Denel began a major restructuring strategy that entailed the unbundling of the group into stand-alone, independent manufacturing entities.
Part of the strategy was for Denel to exit all non-core businesses and properties, the company said.
The restructuring process also involved making internal improvements across all core business units.
Businesses sold during 2006 included the Irenco division, which contained electronics and plastics business Dendustri, consumer electrics firm Voltco, an interest in IT firm Arivia.kom, and the properties within Bonaero Park, Denel’s commercial property company.
”We are on the right track to strengthening the financial position of the group,” Liebenberg said.
Acsa would use the land acquired from Denel for the long-term expansion of its airport-related infrastructure and associated property development.
The sale of the property was based on a ”sale and lease back”, and as such Denel would have sufficient time to relocate and/or reconfigure its operations on the premises. — Sapa