Eskom Seeks Financial Advisers on Separation Into Three Units
- State-owned company has almost 400 billion rand of debt
- Utility has subjected South Africa to power cuts since 2005
Electricity transmission pylons close to Koeberg nuclear power station, operated by Eskom Holdings SOC Ltd., in Cape Town, South Africa.
Photographer: Dwayne Senior/BloombergEskom Holdings SOC Ltd., the state utility that supplies most of South Africa’s power, said it’s seeking to appoint advisers on how to restructure itself into three separate units, a reorganization that was proposed to let it to better deal with an untenable debt burden.
The separation of the Johannesburg-based company into transmission, generation and distribution units was first raised by South African President Cyril Ramaphosa more than two years ago. The company has since reduced its liabilities but is still struggling to manage almost 400 billion rand ($28 billion) in debt, and has subjected the country to intermittent power cuts since 2005.