JOINT PRESS STATEMENT BY MINISTER OF PUBLIC ENTERPRISES, JEFF RADEBE, MINISTER OF WATER AFFAIRS AND FORESTRY, RONNIE KASRILS AND MINISTER OF COMMUNICATIONS, DR IVY MATSEPE-CASABURRI

ON DECISIONS OF THE INTER-MINISTERIAL CABINET COMMITTEE(IMCC) ON THE RESTRUCTURING OF STATE ASSETS HELD ON MONDAY, 29 NOVEMBER 1999

29 November 1999

SAFCOL

The IMCC approved the preferred bidders for four of the forestry packages currently on offer.

• The consortium comprising Thesen, the IDC, the Khwela Consortium and the Southern Cape Forestry Consortium has been selected as the preferred bidder for the Southern Cape package.
• Amathole Timber Holdings has been selected as the preferred bidder for the Eastern Cape South package.
• Singisi Forest Products has been selected as the preferred bidder for the Eastern Cape North package.
• Siyaqhubeka Consortium has been selected as the preferred for the Kwa Zulu Natal package.

Highlights of the preferred bidders’ proposals include:

• Three of the three preferred bidders have undertaken that no significant retrenchments will take place for up to three years following sale.
• The Thesen Consortium will invest R150 million in a new sawmill in the Southern Cape.
• Singisi Forest Products will invest in value-adding activities at the Weza sawmill in the Eastern Cape.
• The Siyaqhubeka Consortium will return 5000 hectares of environmentally sensitive areas next to Lake St Lucia to conservation for inclusion in the Greater St Lucia Wetland Park. This strategy will substantially address concerns of environmentalists.

No preferred bidder has been selected for the Mpumalanga package, nor did Government receive an acceptable offer for either the Northern Province or Western Cape packages. Notwithstanding this, a significant amount of interest has been shown in the Mpumalanga and Northern Province packages, either as part of indivisible offers or on stand-alone basis. Government has therefore decided to re-offer these packages on a similar basis. An accelerated sales process will be applied, details of which will be communicated shortly. It is envisaged that potential bidders for these packages will include existing qualified bidders and new parties.

Government is continuing to explore options for the Western Cape package and will make an announcement on its future as early as possible during the first quarter of 2000.

The above transactions will ensure greater competition in the forestry and sawmilling industry and Black Economic Empowerment groups will become much more significant players in this sector of the economy. These economies of the Southern Cape, Eastern Cape and Kwa Zulu Natal will receive a significant boost from the process.

ALEXKOR

The IMCC approved the loan facility from BOE to Alexkor to the value of R70 million. It also approved the withdrawal of Mmakau Mining from the Nabera Consortium.

DENEL

The IMCC approved the sale of Denel/Ariel’s 50% shareholding in Debis IT Services SA (Pty Ltd) (dittsa). The remaining 50% is held by debis Systemshaus of the Daimler Chrysler group. The disposal is in terms of the pre-emptive right in the shareholders agreement giving the other party first right of refusal in the case of disposal of shares. The disposal will be effected to the value of R33 million.

The IMCC also approved the disposal of Denel’s loan book in Bonaero Park Pty Ltd. Through this facility Denel provided housing loans to employees but since its inception in 1992 the loan book’s composition changed to one which more than 20% of the clients are not employees. Non employee loans mainly consisted of ex Denel/Armscor employees. The disposal to the value of R43 million will be effected via public tender.

TELKOM

The IMCC approved the divestiture of 3% of government equity in Telkom SA Ltd. and approved of the shortlisting of the following companies:

• Ucingo Holdings
• Mehaleng Investment Holdings
• New Horizon Group
• Akulalwa

  The IMCC also approved the initiation of the process for the Telkom IPO(Initial Public Offering) and agreed for it to be listed in 2001.

  The IMCC approved the purchase of 2% shares by Telkom employees to the value of R900 million. The deal will be financed by Nedcor.

  RESTRUCTURING OF SABC

  The IMCC approved the appointment of Gemini Consulting as the advisor for the restructuring of SABC.

  RESTRUCTURING OF SASRIA

  The IMCC approved the commencement of the privatisation of SASRIA with immediate effect. SASRIA is a public company in which government, represented by the Minister of Finance is the sole shareholder.

  Contact info:

  ZAID NORDIEN: 082 453 6224
  ANDILE NKUHLU: 083 675 8277