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Struggling SAA gets privatized.

Public Enterprises Minister Pravin Gordhan announced that Takatso Consortium will now own the biggest share of the airline at 51%, while the government will have a 49% stake.

The privatization comes after the airline filed for business rescue.  

“SAA will be owned in partnership with the government and a strategic equity partner (SEP). Having evaluated the current environment, the government has agreed to the SEP owning 51% of the shareholding and government 49% of the shareholding… The SEP is known as Takatso, which is a consortium. This consortium is 51% black-owned and brings together two very resourceful entities.” Said Gordhan.

It is reported that Takatso has put forward R3 billion towards the creation of a new airline.

“There will be a MOU that is being signed between the consortium and government. Government has undertaken the appropriate due diligence exercise into the consortium itself.” Added Gordhan.

According to Gordhan the department is currently finalising the process of the private partnership.

Public Enterprises Minister further said the consortium will complete its due diligence exercise into the airline.

“Once the processes are completed there will be a signing an agreement on a purchase and sale agreement. A route plan, a fleet plan and staffing plan that will incorporate the best that is available to us,” he said.

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