Question NW294 to the Minister of Public Enterprises

(1)

(a)

Yes, Denel has been in discussions with the government of Qatar.

1. In 2017 Denel was approached by the government of Qatar represented by the Minister of Defence.  The nature of the discussions were about Denel looking for loan funding.  During these discussions, the government of Qatar indicated that they were also interested in Denel equity ownership.

(b)

Not Applicable

(2)

Yes, a memorandum of understanding was signed with the government of Qatar premised on the following conditions:

1. A R350 million loan facility for a five-year term which Denel could draw down on, on a needs basis.
2. Providing the government of Qatar with a six months exclusivity period to conclude the loan agreement (which has now expired).
3. Confidentiality clause.
4. Noting the government of Qatar’s interest in Denel’s equity ownership which also indicated a separate approval process beyond the Denel board.
5. That even when such interest (in D above) is not approved, the loan agreement would continue.
6. Conversion of the loan into equity in the event approval by the government of the republic of South Africa is achieved.

(3)

(a)

No, Denel does not intend to sell any stake.  Denel has no such authority.

(b)

Not Applicable