The Public Investment Corporation has disputed media reports that its funds would be used for the acquisition of a 51% stake in SAA, Picture: Shayne Robinson, Sapa.
The Public Investment Corporation has disputed media reports that its funds would be used for the acquisition of a 51% stake in SAA, Picture: Shayne Robinson, Sapa.

We are not funding SAA, says PIC

By Dieketseng Maleke Time of article published Jun 14, 2021

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The Public Investment Corporation has disputed media reports that its funds would be used for the acquisition of a 51% stake in SAA.

“The PIC noted media reports and comments by some public figures insinuating that PIC funds will be used for the acquisition of a 51% stake in the South African Airways,” the corporation said.

The PIC is a state-owned entity that manages assets valued at more than R1.907 trillion.

On Friday, Public Enterprise Minister Pravin Gordhan announced that a consortium, which is made up of private equity infrastructure investment Harith and aircraft leasing company Global Aviation, Takatso, would have a 51% in SAA, while the government would retain 49%. Takatso would inject more than R3 billion into the deal.

SAA has been in business rescue since December 2019 until two months ago.

On Monday, the PIC said it was not involved in the acquisition and nor were the assets that it managed on behalf of clients.

“However, the PIC owns 30% of Harith General Partners, and some of the individuals involved in Takatso Consortium may previously have been associated with the PIC.”

The corporation said Harith General Partners and the Takatso Consortium did not involve the PIC in the acquisition.

“Whilst it is a fact that the PIC has shares in Harith General Partners, it must be stated that the PIC is not a member of Takatso Consortium, which we understand is a special vehicle established by Harith General Partners and Global Airways. The PIC remains focused on delivering on its investment mandate on behalf of its clients,” the PIC added.

Meanwhile, The National Union of Metalworkers of South Africa and the SA Cabin Crew Association said on Friday that the government should be transparent about the acquisition as they found out about the deal through media reports.

BUSINESS REPORT ONLINE

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