South African Airways (SAA) advanced into majority private ownership last week after the airline struggled over the past decade due to corruption and mismanagement.
Takatso Consortium purchased a 51% stake from the national government for R3.16 billion. Takatso is made up of a local jet-leasing company and a private-equity firm.
Public Enterprises Minister, Pravin Gordhan, commented that the 51% stake would position the airline for future financial and operational success, and bring in competent, reliable and experienced aviation specialists.
‘Government supported the need for a new, restructured airline and the need to mobilise funding from various sources, including from potential equity partners.’ Gordhan said in a statement. ‘This was deemed as the only realistic path for the emergence of a sustainable and competitive airline that can provide integrated domestic, regional and international services.’
Gordhan further commented that ‘government will not be contributing any finance to the new airline’ but would still receive dividends as a preferential shareholder that ‘will benefit South Africa as a whole’.
Takatso commented that it had an experienced and capable team ready to operate SAA once all the regulatory approvals are achieved.
Picture: Getaway Gallery
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