Aviation and Airlines (Commonwealth Union) _ The Competition Tribunal of South Africa has given its approval for the proposed merger between South African Airways (SAA) and Takatso Aviation Proprietary Limited. The strategic equity partner, Takatso Aviation, seeks to acquire a 51% stake in the national carrier from the South African government. The Tribunal’s decision comes with certain conditions, including a moratorium on retrenchments and divestment of the shareholding by Takatso’s minority shareholders.
The Department of Public Enterprises (DPE) has welcomed the Tribunal’s decision, seeing it as a significant step towards revitalizing and bringing SAA back to its former glory. The DPE views this merger as an opportunity to turn SAA into a profitable and competitive carrier in both domestic and international markets.
To proceed with the transaction, Takatso Aviation will acquire 51% of SAA’s issued share capital, while the DPE will retain the remaining 49% shareholding. The majority shareholder of Takatso Aviation is Harith General, and the minority shareholders are Global Aviation (operating the low-cost carrier LIFT) and Syranix (co-owner of the LIFT trademark). The approval is conditional upon the complete divestment of Global Aviation and Syranix from Takatso before implementation. Last month, the minority shareholders agreed to withdraw from the transaction, but Global Airways has not provided further comments on the matter.
The Minister of Public Enterprises, Pravin Gordhan, is confident that the repositioning of SAA through this semi-privatization deal will set a positive example for state-owned companies and contribute to economic transformation and development in the country.
After years of financial struggles, SAA has made progress on its path to recovery since exiting administration two years ago. The government’s efforts to revitalize the airline are crucial to avoiding its potential liquidation and to establish a financially stable and successful carrier.
