Eskom mulls asset sales as Patrice Motsepe circles
Eskom, desperately in need of cash, is in advanced talks to sell its home-loans business, possibly to African Rainbow Capital
Eskom is considering the sale of smaller assets as it weighs solutions to a liquidity crisis that contributed to a wave of rolling blackouts, according to people familiar with the matter. The supplier of almost all SA’s power is in advanced talks to sell its home-loans business, with local billionaire Patrice Motsepe’s African Rainbow Capital (ARC) in line to take some or all of the operation, said the people, who asked not to be identified as the plans are still private. The division, called Eskom Finance Corporation, has an R8.7bn loan book and about 16,000 customers. Eskom didn’t respond to an e-mailed request for comment. ARC declined to comment. Eskom is seeking funding after the company resumed scheduled load-shedding in late November, following a hiatus of more than three years. The utility is struggling to stay on top of maintenance costs and the servicing of a debt pile of about R419bn, while coping with the aftermath of a string of corruption scandals during the presidency...
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