Global Airways Consortium unit Takatso Airways maintains it is well equipped for the 51% takeover of SAA, even as insiders insist the ANC conference was a watershed moment for the deal as the February deadline looms for Takatso to show face.
Takatso’s newly appointed spokesperson, Thulasizwe Simelane, said the consortium is ready to fulfil IRS commitment to funding SAA’s operational costs to the tune of R3 billion over two to three years, to ensure the airline is agile in a competitive market, commercially viable, and contributes to growth of the South African economy, especially tourism, aviation and related sectors, as well as regional and continental trade and integration.
Industry insiders insist, however, that Takatso's window shopping of SAA is over, and that the looming Cabinet reshuffle will put paid to the Takatso wishlist, as Public Enterprises Minister Pravin Gordhan’s hold on the reins of SAA weakens and Transport Minister Fikile Mbalula’s role is watered down by internal politics.
“So far nothing has moved, the impending reshuffle might provide clues to where the deal is going, but with Fikile Mbalula’s move from minister of transport to (ANC) secretary-general and the possible reshuffle of Minister Gordhan from the Department of Public Enterprises, the deal is up in the air, and there was no mention of SAA at the elective conference. The focus was on Eskom,” an industry insider said.
Simelane said there was currently continuous engagement with the Competition Commission, as part of the merger clearance process.
The SAA Strategic Equity Partnership transaction is categorised as a complex merger, meaning there is a lot of information required to satisfy the commission and ensure the transaction is compliant with competition regulations.
“Fulfilment of the SAA Strategic Equity Partnership transaction involves several role-players who are each carrying out certain tasks that each move the transaction forward. We can therefore only account for those tasks and functions that are within the purview and domain of Takatso Aviation,” Simelane said.
He said pending consummation of the deal would irreversibly remove from the South African fiscus the decades-old burden of intermittently bailing out SAA to the tune of billions of rand.
“Takatso is ready to make this investment into the growth of SAA, having undertaken and completed all its requisite internal governance processes to secure this funding. And for the avoidance of confusion, this investment into the future growth of SAA is contingent on finalisation of the transaction conditions, which is in turn partly contingent on fulfilment by stakeholders including government, of the responsibilities,” he said..
Key to Takatso’s strategy are conditions regarding the government settling the balance of SAA’s historical debt.
Simelane said this stemmed from the government’s undertakings during the processes that led to SAA’s exit from business rescue, a process Takatso was not part of, and in which it had no stake.
One industry insider said: “Global Airways may yet pull out of the deal. Even though they haven’t confirmed they are doing so, the writing is pretty much on the wall considering the departure of major partners.”
"Takatso is 80% owned by Harith General Partners, a Pan-African investor and developer founded in 2007, with a history of executing big infrastructure projects and complex deals across the continent. Harith has over $1 billion in assets under management, and has invested in several projects in energy, transport, and digital infrastructure.
“Harith General Partner has long been interested in growing its transport platform, aviation in particular, to complement its existing, related assets.
“We also view an investment in SAA as an investment in the economy. We look forward to running an airline that not only ignites national pride, but also contributes to economic growth, especially tourism and related sectors, regional and continental trade and integration, as well as growing the country’s aviation skills and professions, while contributing significantly to achieving transformation imperatives in this sector,” Simelane said.
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