Proposed changes to transaction ‘simply not workable’ for Takatso. DA says airline must now be ‘cut loose’.
Public Enterprises Minister Pravin Gordhan announced on Wednesday afternoon that the sale of a 51% stake in South African Airways to the Takatso Consortium has been cancelled.
At that point the assets of the company were valued at R2 billion – a liquidation value for the property and “not much” for the business. Gordhan, who earlier announced his exit from politics after the election on 29 May, said government, and the new administration, will consider different ways of going forward, which may include code sharing, partnerships, and an equity partner.Takatso could not allow renegotiations to ‘continue to drag on’
It said about six months ago – “and in recognition of the restart of operations and very different dynamics that were then at play, including the reality that SAA was no longer in business rescue as it was when the transaction was first discussed and negotiated” – the parties “agreed to re-evaluate and re-open negotiations on the transaction structure and the current value of SAA”.
“These conditions were unlikely to be advanced significantly or met by the date of 31 March 2024, the latest in a series of long stop dates that have been extended multiple times over the past two years in order to try and achieve satisfaction of conditions precedent to the deal,” it added. “For 51% of this debt-free SAA to be sold for R51 was outrageous and a slap in the face of taxpayers,” said Lees.
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