Pravin Gordhan has declared the sale of SAA to Takatso Consortium will not proceed.
SAA to Takatso Consortium deal is off, Pravin Gordhan confirms
The public enterprises minister announced the cancellation of the agreement to sell a 51% stake in South African Airways (SAA) to Takatso Consortium at a Cabinet briefing, on Wednesday, effectively marking the end of negotiations that began in June 2021 but were hindered by various challenges, including the need for asset revaluation due to delays.
Wednesday’s developments are a sharp turn from the last update about the deal, which surfaced in July 2022. At the time, reports indicated that following a gruelling eight months of negotiations, Takatso had provisionally secured a 51% stake in SAA valued at a rumoured R3 billion (est. €173.5 million at the time).
Parties had reportedly agreed to a three-year settlement period, pending unanimous upvotes from various regulatory bodies. However, it seems, somewhere along the way, the deal collapsed.
Gordhan, updating the Cabinet, stated:
This development signifies a significant shift in the government’s strategy for finding a sustainable future for SAA, which, at this altitude, is turbulent.
Who is Takatso Consortium?
Takatso Consortium, a partnership between Harith General Partners and Global Aviation, was poised to take a majority stake in SAA, signalling a historic change in the handling of state-owned entities.
Harith, known for its focus on infrastructure development across Africa, manages assets worth approximately R8.56 billion ($630 million).
Its team includes Chairman Phillip Jabulani Moleketi, Group Executive Director Tshepo Mahloele, and Deputy CEO Alwyn Wessels, among others, and owns Lanseria International Airport.
Global Aviation, dubbed “the Uber of airlines,” is led by figures such as former Uber executive Jonathan Ayache, Kulula-founder Gidon Novick, and CEO Quentin Tomaselli.
The consortium’s intended ownership promised a new direction and restructuring for SAA. That was before Gordhan’s shocking announcement.
A statement from the consortium was unavailable when this article was published.