Govt in talks to sell majority stake in Denel to Qatar – report

Government is reportedly in talks with Qatar to sell a controlling stake in the cash-strapped state-owned arms manufacturer Denel, Sunday Times reports.

According to the report, Qatar’s Defence Minister Khalid Bin Mohammed Al-Attiyah is understood to have discussed the proposed acquisition with President Jacob Zuma during a state visit to South Africa earlier this month.

Denel is reportedly in a dangerous financial position, and the parastatal is due to repay a R1 billion facility to a local bank but it does not have the money.

The paper also reports that negotiations for stakes in South African Airways and Eskom are also underway. However, the Department of Public Enterprises or the Presidency could not confirm this.

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