PIC says it is willing to convert R90 billion of Eskom's debt into equity

RVQ

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I'm pretty sure the unions are going to make a scene out of this, if they have their members's best interests at heart. Prepare for lockdown lockdown, level 10
COSATU is pushing for it... Losi's wife must have a coal tender and 2 donkey carts
 

JayM

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You will hear these words soon: "Public sector pension fund members are doing their part. It's now time for the private sector to do the same. For that reason we are introducing prescribed assets."
Well, this didn't take long - and it's even worse than prescribed assets:

 

Sl8er

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Well, this didn't take long - and it's even worse than prescribed assets:

Hmm..lekke-lekke!
The anc will raid the private pension funds because of all the damage codiv-19 (and-totally-not-the-anc-themselves-did-because-everything-was-perfect-before-codiv-19)
did to the economy.

Well isn't that just super convenient.
Codiv-19 couldn't have come at a better time.
 

JayM

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Hmm..lekke-lekke!
The anc will raid the private pension funds because of all the damage codiv-19 (and-totally-not-the-anc-themselves-did-because-everything-was-perfect-before-codiv-19)
did to the economy.

Well isn't that just super convenient.
Codiv-19 couldn't have come at a better time.
Yep. This was always the endgame - Covid-19 just sped it up. Everyone's been debating about how the unsustainable borrowing would play out, but it's been obvious for at least 5 years where the new source of money would come from. EWC is not just for your house.
 

Sl8er

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Yep. This was always the endgame - Codiv-19 just sped it up. Everyone's been debating about how the unsustainable borrowing would play out, but it's been obvious for at least 5 years where the new source of money would come from. EWC is not just for your house.
FTFY
:D
 

konfab

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Ignore the headline, but look at the thorough analysis:
Not such a bad plan, but they still leave the morons in charge who got Eskom into its current state: the South African government. Which means you will still have idiots like Pravin Gordhan and Patel telling everyone how communism is the best way to run a power utility.

If the PIC accepts a debt for equity swap, it may take up as much as 40% in the utility. Its debt is reduced by the R90-billion and when combined with the government’s R23-billion per annum support over the next 10 years, this amounts to another R200-billion.
PIC should pay whatever they are going to pay, lets assume they get 40% of the equity.
Since the SA government on behalf of the people are paying in the rest, ownership should confer to the people of South Africa, via a voucher share scheme. In other words, every single adult South African gets a proportion of that 60% share in the form of a voucher. Those shares are listed on a public exchange (managed by the JSE) and then anyone can buy and sell them for any price they want.

That gets the control away from the SA government and right into the hands of the people. Then if some rich SOB wants to gain control over the utility they are going to have to find a way to pay 58 million people for it.

Then the only regulation that needs to be put on Eskom, is a mandate for the transmission and distribution companies to act as a dumb pipe. In other words they just facilitate the selling of the generation company's electricity.
 

wingnut771

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Not such a bad plan, but they still leave the morons in charge who got Eskom into its current state: the South African government. Which means you will still have idiots like Pravin Gordhan and Patel telling everyone how communism is the best way to run a power utility.


PIC should pay whatever they are going to pay, lets assume they get 40% of the equity.
Since the SA government on behalf of the people are paying in the rest, ownership should confer to the people of South Africa, via a voucher share scheme. In other words, every single adult South African gets a proportion of that 60% share in the form of a voucher. Those shares are listed on a public exchange (managed by the JSE) and then anyone can buy and sell them for any price they want.

That gets the control away from the SA government and right into the hands of the people. Then if some rich SOB wants to gain control over the utility they are going to have to find a way to pay 58 million people for it.

Then the only regulation that needs to be put on Eskom, is a mandate for the transmission and distribution companies to act as a dumb pipe. In other words they just facilitate the selling of the generation company's electricity.
then summarise their 50 page tariff book into one a4 sheet.
 

3WA

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Then if some rich SOB wants to gain control over the utility they are going to have to find a way to pay 58 million people for it.
57.5 million people will sell their shares the day after they become tradable. Then the rich SOB will swoop in after the share price tanks.
 

konfab

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57.5 million people will sell their shares the day after they become tradable. Then the rich SOB will swoop in after the share price tanks.
Doing that with 57.5 million is logistically impossible.
 

3WA

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Doing that with 57.5 million is logistically impossible.
Point is, the market price will be depressed for a long time as everyone tries to cash in. Including me. I'll take whatever I can claw back from that heap of turds. There'd be very little reason for the average person not to sell instantly.
 

Paul_S

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Point is, the market price will be depressed for a long time as everyone tries to cash in. Including me. I'll take whatever I can claw back from that heap of turds. There'd be very little reason for the average person not to sell instantly.
Especially if there is still political interference, unions who block retrenchments and restructuring, etc.
 
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