Government divestments fall behind target in 2012

Poor market conditions have put the spanner in the government’s plans to get out of 24 government-linked companies by 2012.

According to the Economic Transformation Programme 2012 annual report, the government, however, managed to divest out of 15 companies in 2011/2012, out of which only four was divested last year.

In spite of positive developments in the GLIC (government-linked investment company) divestment programme, factors such as companies not reaching their sale trigger price, low valuations, and uncertain market conditions have hindered the sale of some of the companies under the plan.

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