Public Enterprises Minister Pravin Gordhan
Photo by: Reuters
The Department of Public Enterprises (DPE) has warmly welcomed the decision of the Competition Tribunal to approve the takeover of State-owned South African Airways (SAA) by the Takatso consortium. The tribunal did, however, impose conditions on the take-over, namely that there be a moratorium of retrenchments at the carrier, and that Takatso’s minority shareholders divest from the consortium.
The minority shareholders in the Takatso consortium are Syranix and Global Aviation. They are the partners behind South African low-cost carrier Lift. (The majority shareholder is Harith General Partners.)
“With this decision, the Competition Tribunal has affirmed our belief as government that a revitalised and a well-capitalised SAA presents the country with significant opportunities to boost economic connectivity and strategic reach that should benefit our economy and our people for years to come,” stated Public Enterprises Minister Pravin Gordhan. “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.”
The tribunal’s decision allows the consortium and the DPE to conclude the other essential regulatory requirements necessary to complete the transaction. The intent is to restore SAA as the national flag carrier, as what the government sees as an important strategic asset, and as a domestic and international carrier that is not only viable but also competitive and profitable.
“It is very gratifying to see that we are on the verge of having SAA finally infused with the requisite strategic vision, expertise, and capital by Takatso,” he added. “The approval of 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.”