This is despite a high court bid to halt the undertaking.
This comes after former National Treasury director-general Lungisa Fuzile said in court papers that Gupta-linked VR Laser SA was a technically insolvent company and did not appear to be in a position to raise the funds that would enable VR Laser Asia to establish the joint-venture with Denel.
VR Laser Asia is owned by Salim Essa, an associate of the politically-connected Gupta family.
Fuzile filed an affidavit with this claim in response to Denel’s high court bid to acquire approval for the joint venture, Denel Asia.
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Denel wants to partner with Asian-based business of VR Laser as a vehicle to penetrate the Asia-Pacific markets.
It said the decision was based on global research.
AFRICAN NEWS AGENCY