Denel confident of recovery if it gets state bail out
The department of public enterprises has acknowledged the need for further financial assistance to the struggling arms manufacturer
11 August 2021 - 13:00
Cash-strapped state-owned arms manufacturer Denel, which has not been able to pay salaries for several months and does not have enough capital to fulfil its orders, believes it can become a sustainable business within the next five years if it restructures to create a streamlined and refocused company.
The turnaround will depend, however, on a significant bailout by the state, which has given its support to the group’s turnaround plan. It will also require the sale of noncore, or unprofitable assets, which Denel conservatively estimates will realise about R1.5bn over the next five years...
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.
This article is free to read if you sign up or sign in.
If you have already registered or subscribed, please sign in to continue.
Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.