FRIDAY, 12.30PM
MERRILL Lynch, the merchant bank, has been awarded the post as lead transaction adviser for the partial privatisation of South African Airways.
The public enterprises ministry said it had initially received 11 applications for the position, with a shortlist of four having been drawn up last month.
Public enterprises ministry adviser Kennedy Memani said Merrill Lynch will oversee all aspects of the partial sell-off to ensure the best deal for government.
He added that the portion of the national carrier to be sold has yet to be decided, but suggested between 20% and 25% will go to a strategic equity partner, while SAA employees and the National Empowerment Fund will also receive portions.
SPOORNET MAKES DEAL WITH DRC SPOORNET has reached an agreement with the Democratic Republic of Congo’s rail company SNCC to extend an existing operating contract between them for a further six months from January 1, 1998. Spoornet had earlier informed SNCC of its intention not to renew the contract unless SNCC made an effort to settle its unpaid debt. SNCC accepted Spoornet’s conditions to address the outstanding debt, thereby ensuring the continuation of rail operations between the countries until a new contract is negotiated.
SATRA YES TO 25% CALL HIKE TELKOM’s proposed 25% hike in local call charges has been approved by the SA Telecommunications Regulatory Authority. The new plan, to come into effect in January, will see local call charges increase by 25% to offset a 13% decrease in charges for national calls and further reductions in international calls to certain countries. On average across the board, rates will increase by 5%.
WHEAT FORECAST DOWN The drought and hailstorms in the Free State have led the national crop estimates committee to revise downwards its forecast for this years total wheat crop. The current estimate is 2,283-million tons.
LESOTHO BORROWS $51m THE Lesotho Highlands Development Authority has signed a $51-million loan agreement with HSBC Investment bank and France’s Credit Lyonnaise. The funds will be used to finance the construction of two tunnels and a dam in the region.
DBSA GETS R750m LOAN THE African Development Bank has opened a R750-million credit line to the Development Bank of SA to help it finance infrastructure projects. The Abisjan-based ADB said the loan is its first venture into SA and follows November’s decision by the bank to grant rand-denominated loans.