Denel will probably receive between R2 billion and R3 billion, while the Land and Agricultural Development Bank of South Africa will get R1.5 billion to R2 billion, the sources said. Both entities confirmed to Bloomberg that they are seeking money from the National Treasury. SAA, which needs more than R10 billion to restart, is also likely to receive funds.

The bailouts will heighten concern about the stress state-owned companies are putting on government finances, with Eskom also having received support. While Denel has been bailed out before it has struggled to pay salaries in recent months. The Land Bank received R3 billion in June as it couldn’t repay its debt.

The companies have been told to try and seek private equity partners for further funding, Bloomberg’s sources said.

Moneyweb