Nene elaborates on assets up for sale to fund Eskom
Government has identified the nonstrategic assets that wIll be sold to fund State-owned power utility Eskom.
In a reply to a Parliamentary question by opposition party Democratic Alliance MP Dr Malcolm Figg, Finance Minister Nhlanhla Nene said the National Treasury had identified a range of assets, valued at more than R250-billion, that could be disposed of to fund the ailing parastatal.
These included directly held listed shareholdings, listed stakes held through develop-ment finance institutions (DFIs) and unlisted shareholdings in State-owned companies (SOCs) or their subsidiaries.
Government was planning to sell in assets valued at R23-billion.
Treasury would also look at ringfencing and selling assets held by SOCs and the sale of other assets, such as property owned by the State.
In March, Nene said the Treasury had approached about 20 financial institutions, mainly banks, for assistance in identifying the nonstrategic State-owned assets that should be sold.
The allocation of a comple-mentary package to strengthen Eskom’s financial position would be made in three tranches, with the first tranche of R10-billion slated for this month.
“The financing of the R23-billion will be deficit neutral as per the original intent. The process of raising the funds through the sale of noncore assets is firmly on track and details will only be made public at an appropriate time,” the Treasury said in a statement last week.
In addition, govern-ment signalled that it would convert the subordinated loan it previously extended to Eskom into equity, which would further strengthen its balance sheet.
These interventions formed part of the government support package, which also included cost-cutting or efficiency measures to be instituted by Eskom, and appropriate tariff adjustments in line with the regulatory process.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Complete range of security sealing solutions including security seals bags and labels.
VISIT SHOWROOM
FLANDERS Southern Africa provides integrated solutions for mining and industrial operations, covering field services, automation, electrification,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
