Takatso Consortium, which includes Harith General Partners and Global Aviation, was announced eight months ago as poised to buy a 51% stake in the state-owned airline, South African Airways (SAA). According to reports, the deal is now very close to finalisation. Regulatory bodies, such as the Competition Commission, still need to give their green light for the agreement.

The Department of Public Enterprises has signed off on the deal; this was confirmed by Takatso and Cabinet on 24 February. It is said that the deal will bring private sector capital and aviation skills into SAA.

Around R32.3 billion has been pumped into SAA over the past decade; it has recorded cumulative financial losses of nearly R20-billion over the same period.

SAA had a fleet of 49 aircraft when this process began in December 2019; at present it has around 10 planes left.

Takatso initially committed R3 billion in working capital to turning around SAA’s operations and fortunes, but it is believed that this amount excludes money that the Consortium will need to pay government to take over the majority share.

The Consortium said that it is “working closely with the Department of Public Enterprises to fulfil the conditions and ensure that the transaction is timeously concluded. … All matters related to the business rescue process of SAA will be resolved during this time.”

author