Government’s decision to recapitalise Denel will contribute to the comprehensive turnaround of the defence and technology company and help to create a sustainable asset for South Africa.

1. Recap Will FastTrack Denel'sTurnaround
MediaCentre / News&Press
30 August2019
Government’sdecisiontorecapitaliseDenelwillcontributetothe comprehensiveturnaroundof the
defence andtechnologycompanyandhelptocreate asustainable asset forSouthAfrica.
Danie duToit, the Group Chief Executive Officersaysthe R1.8 billionrecapitalisationcomesonthe
back of tangible progressof detailedplanstorestructure the business,enterintostrategic
partnershipsandfindnewmarketsforitshigh-technologyproductsandsolutions.
“We are grateful forthe unwaveringsupportthatwe receive fromourshareholder,the government,
and National Treasury.Itdemonstratesaconfidence athighlevel forthe measurestakenbythe new
Board and managementandacommitmenttosupportus throughthe nextstagesof the
turnaround,”he says.
There isstrong agreementthatDenel isastrategicnational assetthataddsgreat value tothe
defence andsecuritysectors,butalsocontributestobroadereffortsinthe fieldsof technology,
advancedmanufacturingandskillsdevelopment.
”The allocationformspartof a R2,8 billionrequest,of whichthe additional R1billionwillbe
consideredinthe 2020/21 budgetaryprocess.The allocatedportionwillenable Denel to improve
deliveryperformanceandsupporttolocal and international customers.Itwill alsobringrelief toour
partnersand supplychainswhohave beenaffectedbyDenel’sliquidityissuesinrecentmonths.”
Du Toit saysDenel will continue workinghardinachievingthe conditionsthatcomeswiththe
recapitalisation.Continuedcareful managementof the supplierbase,on-time andon-budget
executionof projectsiscritical inthe next12 months.Denel remainsaligned withthe shareholder’s
expectationsthatitdisposesof non-core assetsonanurgentbasisand establishesstrategicequity
partnershipsacrossthe variousdivisionsof the company.