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Eskom unbundling fails to cut solvency risk, Futuregrowth says

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Futuregrowth Asset Management said that despite efforts to make South Africa’s Eskom Holdings profitable, including a process of unbundling its divisions into separate entities, “the core problem of debt” has yet to be addressed. The utility that reported a fourth straight full-year loss on Aug. 31 has very high finance costs on a debt pile of about R400-billion. Eskom expects to separate its transmission division from the utility by the end of the year, with generation and distribution units to follow in 2022.

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