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."