The Department of Public Enterprises (DPE) announced today that the Takatso Consortium, comprising Harith General Partners, a leading investor in African infrastructure and airports, and airline management firm Global Airways, has been selected as the preferred Strategic Equity Partner (SEP) for South African Airways (SAA).
This follows a rigorous, year-long process undertaken by DPE to identify a suitable SEP for SAA. The Consortium will undertake a normal due diligence exercise before the transaction is finalised.
This partnership between Government and private sector is a demonstration of South Africa’s ability to develop an entirely homegrown solution to successfully relaunch SAA as a sustainable, competitive and transformed airline.
Public Enterprises Minister Pravin Gordhan says the selection of the Consortium is a ground-breaking decision for Government. He said, “The partnership brings together South African public and private sector capabilities to reposition SAA. We have looked long and hard at the proposals submitted, and our clear choice of a preferred partner is the Takatso Consortium.
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. SAA will contribute to the venture, the brand, the flag, landing slots, route licences, lounges and a successful loyalty program (Voyager).
“With this partnership, we believe we are closer to achieving the important objective of having a sustainable national airline. 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. As we recover from the impact of Covid on the aviation industry, African countries will reopen their borders, enabling the movement of people, cargo and trade. We want to relaunch SAA as an iconic South African brand and are confident that we have the right partner to achieve this objective,” said the Minister. He also said “Government will retain a ‘golden share’ in SAA which will ensure that the flag is retained, that it remains domiciled in the country and issues such as transformation goals remain upper-most.”