Views Article – Sharenet Wealth

Africa, News

Consortium to take 51% stake in South African Airways -minister

(Adds details, consortium quote)

JOHANNESBURG, June 11 (Reuters) – A consortium will take a 51% stake in South African Airways and inject over 3 billion rand ($221.60 million) in the struggling airline, public enterprises minister Pravin Gordhan said on Friday.

SAA has been under a form of bankruptcy protection since December 2019, and its fortunes worsened during the COVID-19 pandemic. All operations were mothballed in September 2020 when funds ran low.

The government’s search for an equity partner to allow the airline to resume operations is now over, Gordhan said, adding the government will retain a 49% stake though the intention will be to list the airline in the future.

The equity partner, dubbed Takatso Consortium, comprises pan-African investor group Harith Global Partners and aviation group Global Aviation, Gordhan said.

In a statement, co-founder and consortium chair Tshepo Mahloele said it has the experience, expertise and capital to transform SAA into a substantial operating business.

“The partnership represents a robust, exciting South African-bred solution,” he said.

($1 = 13.5379 rand) (Reporting by Nqobile Dludla; writing by Emma Rumney; editing by Jason Neely)


© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.