Singapore is set to sign a deal to acquire Rafael Advanced Defense Systems Ltd.'s Spyder SR short-range air defense system, US weekly "Defense News" reports.
"We're now in the final stages of negotiations with Rafael on the purchase of the system," a senior source in Singapore told "Defense News." Rafael declined to comment to "Defense News" but an official announcement on the deal is likely to be made in the near future.
Israel had a very strong presence at the Singapore Air Show which ended yesterday. Eight Israeli defense manufacturers presented their products in the Israeli booth, organized by the Israel Export and International Cooperation Institute, among them Rafael, Israel Aerospace Industries Ltd., Elbit Systems (Nasdaq: ESLT; TASE: ESLT), and the SIBAT - Foreign Defense Assistance and Defense Export Organization.
Sources at the air show said that Rafael proposed during the negotiations that Singapore itself supply the command and control system and radar for its system. Singapore did not ask that it be granted an "offset" option, which if included would mean that Rafael would be required to purchase certain products in Singapore at an agreed price, in exchange for Singapore's consent to purchase the Spyder.
However, it is expected that the deal will be accompanied by the transfer of Israeli technology to Singapore. The sources note that the future agreement will contain an "implied reference to potential industrial participation" (by Singapore) and that part of the project will be given "in any way, in any place" to a Singaporean company called ST Engineering.
Published by Globes [online], Israel business news - www.globes.co.il - on February 26, 2008
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