Selling a stake in Denel has not been ruled out, says minister
Denel has faced a cash crunch recently
The government has not ruled out selling a stake in state-owned arms manufacturer Denel, Public Enterprises Minister Lynne Brown has said. Denel has recently been faced with a cash crunch which gave rise to fears it would not be able to pay salaries. The fears were subsequently allayed. In a written reply to a parliamentary question by EFF MP Marshall Dlamini, Brown stressed that Denel had not, as yet, engaged with any companies regarding the sale of a stake. "The government has no plans, at this stage, to dispose of any equity stake in Denel. However, in reviewing and optimising Denel’s capital structure, such a decision cannot be ruled out," Brown said. "Denel has an order book with the United Arab Emirates and recently entered into a memorandum of understanding with Qatar for possible future business prospects."
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.