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14-Jun-2021 8:25 AM

South African Government selects preferred strategic equity partner for South African Airways

South Africa's Ministry of Public Enterprises announced (11-Jun-2021) the Takatso Consortium was selected as the preferred strategic equity partner for South African Airways (SAA). Takatso will be assigned a 51% stake in SAA and the South African Government will retain 49%. The government will also hold a 'golden share' of 33% of the entity's voting rights and "certain areas of national interest". Details include:

  • Takatso Consortium comprises African infrastructure and airport investor Harith General Partners and airline management firm Global Airways. The consortium is led by Tshepo Mahloele and Gidon Novick, who commented: "There are great skills and talent available as well as abundance of available aircraft, which makes the quest of creating a world-class airline a lot easier";
  • Takatso will provide the required capital and there will be no further financial burden on the South African Government. Historical liabilities will be the responsibility of the government;
  • Takatso and the Ministry of Public Enterprises will carry out a joint assessment of the future of SAA's subsidiaries;
  • The parties aim "To relaunch a viable, scalable, agile and sustainable national South African airline that is no longer dependent on the South African fiscus";
  • The parties will "explore the revival and re-establishment of partnerships with African and International airlines and networks";
  • Phase one of SAA's relaunch will include key domestic and select regional routes. The airline will build its network and frequency as demand returns and rebuild a "focused" long haul international network as the COVID-19 pandemic recedes;
  • The parties have a longer term, strategic objective to create a listed vehicle and initial public offering for the airline, in which all South Africans will have the opportunity to participate. The proposed listing "will address future funding requirements".

Minister of Public Enterprises Pravin Gordhan commented: "The objective of bringing in an equity partner to SAA is to augment it with the required technical, financial and operational expertise to ensure a sustainable, agile and viable South African airline. SAA will contribute to the venture, the brand, the flag, landing slots, route licences, lounges and a successful loyalty programme". [more - original PR]

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