Transport Minister Fikile Mbalula
A number of prospective investors have expressed an interest in buying a stake in Airports Company SA (ACSA), but the state-owned entity, which runs the country's main airports, is not for sale, according to Transport Minister Fikile Mbalula.
"ACSA is not only a strategic national asset with an important role to play in South Africa's economic reconstruction and recovery, but also in enabling the growth of the aviation sector in Africa," Mbalula said in a statement on Friday.
"It is on this basis that the government has no intention to divest the equity it holds in ACSA, in favour of private shareholding in the foreseeable future."
Government owns a 74.6% stake in ACSA and the Public Investment Corporation holds 20%. The rest is held by a number of private investor groups.
"While it is true that ACSA has been severely impacted by the Covid-19 pandemic as a result of travel restrictions, it remains on course on the recovery path," said Mbalula.
"We will continue to engage with investors with a view to direct these investments to projects that we believe will add appropriate value to our service delivery mandate across the sector, and not equity. The aviation sector has massive potential for investment and we encourage investors to take advantage of the opportunities it presents."
An source familiar with ACSA told Fin24 that the statement by Mbalula is likely in reaction to recent comments made by billionaire Rob Hersov. He told The Nielsen Network that he sees untapped value in six regional ACSA airports.
In April this year the Supreme Court of Appeal (SCA) dealt a blow to minority shareholders in ACSA, ruling against them in a drawn-out legal battle over shares they purchased in 1998.
The minority shareholders, which include Old Mutual-controlled Futuregrowth and other parties, claim they were expecting to be able to sell their shares once the company was listed on the JSE – but this never occurred. They are also unhappy because they say they have not been able to get fair value for their shares from ACSA.
ACSA is set to announce its financial results for the year ended March 2022 next week.