Cape Town - The government has announced the sale of a majority stake at cash-strapped SAA with a black-owned consortium pumping in more than R3 billion to get the majority slice of the stake.
Public Enterprises Minister Pravin Gordhan said on Friday said after the conclusion of all business rescue process the purchase agreement will be signed with Takatso consortium consortium.
The consortium, which paid more than R3bn for the stake, will own 51% of SAA while the government will have a 49% stake in the airline.
Gordhan said this was a start for the airline with the new equity partner.
He said boards will be representative on the basis of 51% and 49%.
“How much is the equity partner putting in, as I have said more than R3bn. All the other subsidiaries are being evaluated,” said Gordhan.
SAA has been in trouble for many years and has not been able to make a profit over the last 10 years.
The government has been pumping in bailouts to the value of billions of rands in the last few years.
Gordhan said after the equity partner has come on board SAA will no longer rely on bailouts for its survival.
Parties have been calling for an end to bailouts of state-owned entities and government had also been getting them to strengthen their balance sheets.
IOL