South Africa’s Public Enterprises Minister Pravin Gordhan on Friday announced that a new private equity partner Takatso consortium would be the majority shareholder of the new South African Airways (SAA).
Takatso will own 51 percent of the airline while the government will own 49 percent.
“The objective of bringing in an equity partner to SAA is to augment it with the required technical, financial and operational expertise to ensure a sustainable, agile and viable South African airline,” the minister said.
Takatso is made up by Harith General Partners, an investor in African infrastructure and airports, and Global Airways, an airline management firm.
Gordhan also revealed that Takatso invested 3 billion rand (about 219 million U.S. dollars) into the partnership as the airline prepared to relaunch.
SAA was the first state-owned entity to be placed under business rescue, which started in December 2019. The process took almost 18 months and cost taxpayers about 250 million rand.
Gordhan said the new airline would not depend on public funding.
“The new SAA will not be dependent on the fiscus. It will be agile enough to cope with the current uncertainty and improvement in global travel,”he said.
The new equity partners expressed confidence in the partnership, saying the airline would support regional and continental economies. Enditem