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Eskom to sell R5.7 billion business


Published on 2024-12-06 03:30:59 - businesstech.co.za
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  • Eskom, on the other hand, needs to raise revenue, with the sale of its home loan business a condition of the government's R254 billion bailout package for the state-owned entity. Eskom has recently proposed a revenue and price increase of 66% over the next three years, which equates to:

Eskom, South Africa's state-owned power company, is set to sell its Eskom Finance Company (EFC) for R5.7 billion as part of its unbundling process. This sale aims to streamline Eskom's operations by focusing on its core business of electricity generation, transmission, and distribution. The EFC, which provides financial services like loans, investments, and treasury management to Eskom and its subsidiaries, has been identified as non-core to Eskom's primary functions. The transaction is part of a broader strategy to improve Eskom's financial health and operational efficiency, with the sale expected to help reduce the company's debt and enhance its balance sheet. The buyer of EFC has not been disclosed, but the move is seen as a step towards making Eskom more agile and financially robust.

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