BAE halves stake in Saab

5th Mar 2010 07:58

Defence company BAE Systems has halved its stake in Swedish aerospace group contractor Saab.BAE will convert 1.05m Saab ‘A’ shares in to Saab ‘B’ shares and will then sell 11.2m Saab ‘B’ shares to Swedish investment company Investor AB for SEK 1,066m, equivalent to 95.50 Swedish krona (SEK) per share.If completion occurs after 20 April 2010, the record date for the dividend of SEK 2.25 per share, the price will be reduced by SEK 25 million.The deal will reduce BAE’s stake in Saab to 10% from 20% and boost Investor's holding close to 30%. The company intends to sell the remainder of its stake in Saab through a market placing ‘in due course’.The UK company has been a major shareholder in Saab since 1998 when it bought a 35% stake from Investor AB.The Saab aerospace company no longer has any connection with the Saab car company, which is owned by Dutch company Stryker.