South African Airways terminal. Picture: Gallo Images/Thulani Mbele
The sales and purchase process of 51% of SAA shares to Takatso Consortium has now been concluded, with the transaction now needing regulatory approval.
The deal to dispose of SAA shares was signed off by the Department of Public Enterprises and Takatso Consortium.
Cabinet has confirmed that the next step involves the approval of this transaction by various regulatory bodies.
Takatso Consortium is the preferred Strategic Equity Partner for the SAA.
It comprises Harith General Partners, owners of Lanseria International Airport and a leading investor in African airports infrastructure, and airline management firm Global Airways.
The government will retain a 49% controlling stake in SAA and special voting rights to ensure the airline remains in the country.
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Takatso said it would invest R3.5 billion in the embattled airline over the next three years after Public Enterprises Minister Pravin Gordhan said the government would not be investing any more money into SAA.
The deal allows SAA to continue operating without further bailouts from the government.
In early February, interim SAA chief executive Thomas Kgokolo said the airline was poised for growth and was on an upward trajectory.
Next month, flights to Mauritius are expected to resume three days a week between Johannesburg and Durban.
Kgokolo’s comments came after SAA had completed its first 100 days back in the skies after being in business rescue for more than a year, from December 2019 to April 2021.
But the R10.3 billion rescue plan did not include its subsidiaries Mango, SAA Technical and Air Chefs.
Mango Airlines went into business rescue in August last year and is looking for a buyer.
If Mango fails to attract private sector buyers, the airline would be wound down, and its assets will be sold to pay creditors.
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