After more than two and a half years of discussions, the South African government has finally approved the acquisition of local micro-sat manufacturer SunSpace by the South African National Space Agency (SANSA).
At a cabinet meeting on 10 October 2012,…
After more than two and a half years of discussions, the South African government has finally approved the acquisition of local micro-sat manufacturer SunSpace by the South African National Space Agency (SANSA).
At a cabinet meeting on 10 October 2012, the state received and accepted the outcomes of an investigation into the proposed acquisition and approved that “negotiations be entered into with SANSA – an entity owned by state – to explore the absorption of the core capability of Sunspace into SANSA. This will ensure the strengthening of satellite and manufacturing capability within SANSA.”
The latter part of that statement has caused both confusion and consternation at Sunspace given that the initial plans put in place back in January 2012 only referred to SANSA taking a majority stake in the company rather than absorbing it into the agency.
SunSpace’s managing director Bart Cilliers told local reporters that the Department of Science & Technology (DST) had originally offered to provide financial support to the company through acquiring a 55 – 60% stake and commitments on ordering micro-satellites. He questioned what this latest decision would mean for the company’s existing shareholders, who have provided financial guarantees during the period that the government has deliberated.
His view was echoed by the Junita Kloppers-Lourens, shadow minister of science and technology, who stated: “I will be submitting parliamentary questions to ascertain whether Cabinet’s decision means that the DST is walking away from the 23 month salary arrears incurred by the personnel of SunSpace – on the back of assurances to sustain SunSpace made by former Minister Naledi Pandor in Parliament last year (in addition to the MoU SunSpace signed with the DST to this effect).
“I also want to know what the timescales are for starting negotiations with SunSpace to implement the Cabinet decision. SunSpace cannot afford to wait any longer. It requires a transfer of approximately R450m (US$52m) to sustain its operations. It is hard to understand why government has failed to bring this particular transaction to a close.”
In March 2011, the then Science & Technology minister Naledi Pandor announced that the government had in principle approved the proposed acquisition but was awaiting the findings of two studies into the business case, with reference to the value proposition of such an investment to the government and how the SunSpace would be sustained over the long-term. The results of these studies have subsequently led to the adjusted plan to absorb the satellite manufacture into SANSA.
Originally an offshoot of the University of Stellenbosch’s engineering department, SunSpace became a commercial entity in 2000 majority owned by the University’s commercial arm Unistel Group Holdings. Other shareholders include black empowerment funds NEF (National Empowerment Fund), which purchased a 30% stake for R50m (US$7.2m) in 2009, and Dusty Moon Investment group.
