South Africa: Govt deal to sell stake in SAA crumbles
A deal to sell a majority stake in the troubled South African Airways (SAA) has fallen apart.
Pravin Gordhan, South Africa’s Public Enterprises Minister overseeing the company said on Wednesday the government and Takatso had agreed but “there was no clear path forward” for the transaction after a new business and asset valuation. The South African government had been negotiating the deal for three years.
The airline was on the verge of being liquidated before it entered a form of bankruptcy protection in 2019.
Its finances worsened as the COVID-19 pandemic restricted air travel and depleted its already minimal cashflow, forcing the government to hunt for a strategic equity partner to keep it afloat
The government announced the planned deal to sell a controlling stake in SAA to the Takatso Consortium in 2021, part of efforts to end recurring bailouts to the flag carrier.
