Govt puts struggling SAA into private hands
The majority of South African Airways (SAA) will now be privately-owned, the Department of Public Enterprises announced on Friday.
Public Enterprises Minister Pravin Gordhan announced that Takatso Consortium will now own the biggest share of the airline at 51%, while the government will have a 49% stake.
"SAA will be owned in partnership with the government and a strategic equity partner (SEP). Having evaluated the current environment, the government has agreed to the SEP owning 51% of the shareholding and government 49% of the shareholding.
"The SEP is known as Takatso, which is a consortium. This consortium is 51% black-owned and brings together two very resourceful entities.”
SAA's privatisation comes 19 months after it entered into business rescue.
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Although the full amount of the business rescue process has not yet been divulged, Takatso has pumped R3 billion towards the creation of a new airline.
Gordhan said the department is currently finalising the process of the private partnership.
"There will be a MOU that is being signed between the consortium and government. Government has undertaken the appropriate due diligence exercise into the consortium itself.
“Thirdly, the consortium will complete its due diligence exercise into the airline. Once the processes are completed there will be a signing and agreement on a purchase and sale agreement. A route plan, a fleet plan and staffing plan that will incorporate the best that is available to us."
