Takatso Consortium agrees to sell its stake in SA to comply with recommendations of country’s Competition Commission.
“We don’t want to be seen as a hindrance to a very important privatisation,” said Mr Novick, speaking on behalf of ACMI’s (Air Capital Management Institute of South Africa) and Syranix (management consultancy), which represents minority shareholders in the bid for the 51% stake. “It’s not a case of the minority party caving in to political pressure,” he added.
Mr Novick said financial advisors would coordinate with potential buyers.
Minority shareholders have previously indicated that they are not willing to sell out to the consortium, which includes majority shareholder and Black Empowerment asset management firm, Harith General Partners (HGP). The departure of minority shareholders was a condition for the regulator to finalise the privatisation deal that has dragged on for over two years.
Global and Syranix declared last month that they would contest their exclusion before the Tribunal, which makes those rules.
The Commission's recommendation was based on a perception of a conflict of interest, given that Global and HGP operate Lift Airlines, which competes with SAA domestically.
The minority shareholders were increasingly excluded from the negotiations, with Novick stepping down as Takatso's CEO and director because they were not being kept informed of the financing and he could no longer meet his fiduciary obligations.
According to thetransporteronline24, the international investment bank will investigate potential buyers and assess the assets of SAA. The financial advisor will also assess the market for buyers, verify the business’s fair value and assist in the legal process. “It’s a shame because we really wanted to be part of a successful privatization process in this country,” Novick said.
According to reports, Takatso will inject ZAR3 billion (USD 164 million) in operational capital over three years. However, questions have been raised as to how Takatso plans to raise the funds.
Under the privatisation deal, the government has to cover SAA’s legacy debt, which is said to still be at ZAR1,5 billion (USD 82 million).
The Competition Tribunal hearing is scheduled for later this month.
