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Bondholders should price in Eskom ‘status quo’, as Brown dismisses privatisation option

Engineering News – ONLINE

5 August 2014

Public Enterprises Minister Lynne Brown described the debate around the privatisation of Eskom as “misguided”, while an analyst urged Eskom bondholders to price in the “status quo” rather than to anticipate any near-term break-up of the State-owned electricity utility as speculated in a leading South African newspaper on Tuesday.

The Business Day reported that Cabinet was considering the sale of some of Eskom’s power stations to private investors as part of a plan to deal with the company’s financial crisis – a crisis that has arisen as a result of weaker-than-expected sales and tariff increases that Eskom said were not yielding an adequate rate of return.  Read more…

 

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