State-owned aerospace and defence technology conglomerate Denel on Tuesday said it was in ongoing talks with Finance Minister Malusi Gigaba and Public Enterprises Minister Lynne Brown regarding its multibillion-rand joint venture (JV) deal with VR Laser Asia, which led to the creation of Denel Asia.
Media reports earlier this month stated that Gigaba had approached Denel chairperson Daniel Mantsha to not continue with the deal. Former Finance Minister Pravin Gordhan also refused to approve the JV.
The reports stated that Gigaba had concerns about the financial implications of the deal for the National Treasury, noting that the deal did not make “business sense”.
“We will continue to engage with the National Treasury directly to ensure that any misunderstanding . . . is resolved amicably,” Denel said in a statement.
The company maintained that the Asia-Pacific region was “an extremely important region” for Denel to expand its business and find new markets for its products, particularly in the fields of artillery, armoured vehicles, missiles and unmanned aerial vehicles.