SAUDI DEAL CANCELLED
Arms manufacturer Denel ‘is solvent and not for sale’
Chair Monhla Hlahla says the possible sale of the state-owned arms manufacturer to the Saudis is no longer on the cards
A sale of state-owned arms manufacturer Denel to Saudi Arabia is no longer on and the company, which recorded a loss of nearly R2bn in the past financial year, is strong enough to stand on its own, chair Monhla Hlahla said. She said in an interview after a briefing to parliament’s public enterprises committee on Wednesday that the discussions with the Saudis had taken place when the company was in a financially precarious position. The board and management were now firmly convinced that Denel was a valuable, national asset that had to be preserved. International relations & co-operation minister Lindiwe Sisulu confirmed recently that Saudi Arabia had approached SA about taking a stake in the arms manufacturer. Saudi Arabian Military Industries CEO Andreas Schwer also told Reuters that Saudi authorities were in talks about a possible stake in Denel. Talib Sadik, a board member and head of the audit committee, assured MPs that Denel was solvent and liquid, with more than R200m in the ...