By Thys Khiba – The Competition Tribunal has approved the Takatso Consortium’s proposed purchase of a 51% shareholding in the state-owned company South Africa Airways (SAA).
This comes after the state-owned airline SAA was on the brink of liquidation and faced profitability challenges.
DPE Welcomes Competition Tribunal's Approval of Takatso's Proposed Purchase of 51 PCT Interest in SAA pic.twitter.com/OhXKweS5I6
— DPE_ZA (@DPE_ZA) July 25, 2023
On Tuesday, 25 July, the Department of Public Enterprises (DPE) welcomed the Tribunal’s approval of the proposed purchase of more than 50% shareholding in SAA. The DPE viewed the decision as a significant step in its efforts to consolidate the re-emergence of the SAA as a key strategic asset.
The DPE and Takatso Consortium are expected to finalise other critical regulatory requirements to conclude the transaction.
According to the departmental spokesperson, the transaction is aimed at turning SAA into a competitive, profitable and viable carrier.
Meanwhile, the DPE Minister Pravin Gordhan said the Tribunal’s decision to approve the deal affirmed their belief ‘as government that a revitalized and a well-capitalised SAA presents the country [South Africa] with significant opportunities to boost economic connectivity and strategic reach that should benefit the economy.’
“I am confident that the repositioning of SAA sets a very good example of what can be achieved when the right financial and operational framework is given to state-owned companies so they can fulfil their mandate to advance our economic transformation and development as a country,” said Gordhan.
Gordhan expressed confidence in the requisite strategic vision, expertise, and capital by Takatso that will finally assist SAA.
“The approval by the Competition Tribunal also sends a very strong message about the extent of the hard work that has gone into this transaction, considering that SAA was on the brink of liquidation.
“The steps we have taken will ensure that SAA is returned to profitability and sustainability,” said Gordhan.
Meanwhile, it has been reported the minority shareholders in the Takatso have appointed a local corporate advisory firm and an international investment bank to identify potential investors to buy their shares.
The minorities hold an effective 10.2% stake in SAA via their 20% holding in Takatso, which will acquire a 51% stake in the SAA group when the transaction closes.
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