State asset sale for Eskom to wrap up this month: Nene | Fin24
 
  • Ferial Haffajee

    Why should SAA employees pay for the sins of Dudu Myeni and Jacob Zuma?

  • The Namibian Link

    Evidence is mounting that VBS Mutual Bank aided another elaborate bank heist.

  • Mobile Merger?

    Telkom has confirmed it is in talks to buy network operator Cell C.

Loading...

State asset sale for Eskom to wrap up this month: Nene

Jun 04 2015 19:21

Cape Town - Government expects to conclude the sale of state assets to raise R23bn for cash-strapped Eskom this month, Finance Minister Nhlanhla Nene said on Thursday.

"We are anticipating the resources coming through during the month of June," Nene told Reuters on the sidelines of the World Economic Forum (WEF) Africa in Cape Town. The government was "on track" to meet its capital-raising target, he added.

Nene declined to give any details of the sale, citing market sensitivity.

However, sources involved in the process told Reuters in December the government was considering relinquishing shares in listed firms such as mobile phone company Vodacom [JSE:VOD] and landline operator Telkom [JSE:TKG], in which it has a 51% stake.

Other options could be selling shares it owns through the state Industrial Development Corporation, including an 8.2% holding in petrochemicals firm Sasol [JSE:SOL], and stakes in mining firms Kumba Iron Ore [JSE:KIO] and BHP Billiton [JSE:BIL].

The government also has the option of selling part of freight logistics giant Transnet, arms manufacturer Denel, forestry firm Safcol, diamond miner Alexkor or national carrier South African Airways (SAA).

Nene presented an appropriations bill to parliament this week that will enable him to allocate the first R10bn of capital raised to Eskom this month.

The ruling African National Congress has long been reluctant to sell stakes in public firms for fear of upsetting its powerful labour union allies who believe more private ownership will translate into job losses.

However, a funding crunch at Eskom, which is also battling to keep the lights on as it completes new power stations, has forced it to change tack.

anc  |  eskom  |  wef africa 2015  |  nhlanhla nene  |  sa economy
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
35 comments
Comments have been closed for this article.
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...