The South African defence industry’s best known secret – the takeover of troubled ATE by the Paramount Group - looks set to become reality before mid-year.

In June last year Midrand-based ATE issued a statement saying it was back in business after the North Gauteng High Court declared a resolution to commence business rescue proceedings had “lapsed and become a nullity”.

At that time ATE said its board of directors was “actively in focused negotiations with a number of highly credible international investors from the aviation industry of significant financial substance, who are acutely interested in making a significant investment in ATE on an urgent basis. Such investment will enable ATE to be restored to full health and make an offer to creditors, suppliers and other stakeholders of ATE which will surpass the offer in the former so called business rescue plan to a significant and material degree”.

This has now advanced to the stage where the ATE website carries a 60 page “Business Rescue Plan” compiled by senior business rescue practitioner Gavin Gainsford of KPMG.

The plan includes only a proposal from the Paramount Group. With no other white knights on the horizon it seems just about a done deal for Ivor Ichikowitz’ group to cement its position as the largest privately owned defence industry company in South Africa.

Details of exactly how and what the merger/take-over will mean in terms of products, support, research and technology will only be announced once the business rescue plan has been signed off by both parties.

For Paramount it will be the addition of a specialist aeronautical engineering capability to its already impressive line-up of aerospace, land and maritime-based defence and security products. The ATE unmanned aircraft systems business unit will come into the Paramount stable at a time when these aerial platforms are making their presence felt more and more in military and other security applications such as anti-poaching and maritime patrolling.

For the SA Air Force the impending coalition between ATE and Paramount means it will still have a local supplier of the Hawk navigation and weapon system. ATE developed the system which has been certified by both BAE Systems and Armscor.

Multi-mission integration kits for helicopters are another speciality ATE brings to the Paramount table as are the manufacture of composite rotor blades.

Paramount prides itself on providing integrated turnkey solutions to global defence, peacekeeping and internal security forces. This has seen it develop a range of security vehicles today in service in many countries, with the Brazilian police becoming the newest user.

It is also a partner in the development of AHRLAC (Advanced High-Performance Reconnaissance Light Aircraft) with Centurion-based Aerosud. The high-wing, single-engined aircraft is at an advanced stage and work is underway on a full scale prototype following 80 successful flights of a quarter size scale model. September has been set down as a potential date for the first prototype flight.

 

Comments

 
#1 Richard Young 2013-04-22 16:39

This sounds like an advertorial.
 
 
#2 Admiral Lord Nelson 2013-04-22 17:36

Richard Young of course does not believe in anything as open and transparent as advertorials. his preferred method is clandestine - feeding garbage to gullible young journalists who know no better.
 
 
#3 Sihle 2013-04-22 17:47

Richard Young go fly a kite. It is an impressive move from Paramount Logistics
 
 
#4 Richard Young 2013-04-22 17:50

Although it was not the objective of the response it sounded like I got a biggie.

An admiral nogal.

Admiral Lord Nelson was probably the greatest naval warfighter who ever lived and one of Great Britain's greatest sons.

Now he has come back from heaven to joust online with me.

No, it can't be him.

His Lordship would never stoop to simple ad hominems like the clandestine feeding of garbage to gullible young journalists who know no better or not believing in things open and transparent.

But I've probably just wasted 10 minutes in compiling this post as I will never get a response.

Or is the modern day identity thief merely a common troll, naval or otherwise?

 
#5 Admiral Lord Nelson 2013-04-22 17:56

Dear, dear Richard,

so thin skinned again?

You have not wasted any more time now than you have been wasting all these years.

Tilting at windmills. Adjusting the truth. Ranting and carrying on because the old apartheid rules of "procurement" no longer apply and you have to compete on a level playing field.

But fear not, you will find more gullible journalists to run your stories without quoting you.´, no doubt.

 
  #6 Ken Jones 2013-04-22 18:38

Well done Paramount - best thing since Marmite !! We ALL wish you success !!
 
 
#7 Richard Young 2013-04-22 19:13

So I bagged me a naval troll.

My first ever.

Or is it?

Full of piss and vinegar.

But shame, no identity except an immodest stolen one.
 
 
#8 Richard Young 2013-04-23 09:09

And a minnow to boot from Sihle.

My comment really had much less to do with Paramount's acquisition of ATE, but the demise of the latter.

ATE was a huge R500 million Arms Deal second line recipient while Paramount was at most somewhere on the the periphery.

The tables turned.

Yet most of the press article is not about the truly incredible story of ATE's hero to zero, but how wonderful is its white knight.

It looks right out of Paramount's marketing department.

Tell me it ain't true.
 
 
#9 Richard Young 2013-04-23 11:05

Okay, so I have a few detractors.

Fortunately, few and far between these days: ratio 2:1 000.

And other than Sihle, mostly nameless wonders.

But one needs a few eggs for a gourmet omelette, indeed any omelette at all.

With acknowledgement to Kim Helfrich and defenceWeb.