South Africa has terminated a deal to sell a stake in its national airline after failing to agree on a value and other terms with a consortium of private investors.
The government had since 2021 planned to sell 51% of the loss-making South African Airways (SAA) to the Takatso Consortium, as part of efforts to end recurring bailouts of the flag carrier.
After three years of negotiations, Public Enterprises Minister Pravin Gordhan on Wednesday said the deal had been called off “as there is no clear path forward”.
Mr Gordhan cited the impact of the post-Covid-19 market as a significant factor in the decision, leading to a revaluation of SAA’s worth.
“We are convinced that SAA can sustain itself in the next year to 18 months and that there are various other ways in which immediate financing can be obtained,” he added.
In a statement, the Takatso Consortium said the changes in the deal to buy SAA would have taken too long to achieve.
SAA will now revert to being fully state-owned but the government said the airline was open to entering into other partnerships.
The collapse of the deal is a blow to President Cyril Ramaphosa’s efforts to sell off non-performing state entities and bring state debt under control.
Asaase Radio 99.5 broadcasts on radio via 99.5 in Accra, 98.5 in Kumasi, 99.7 in Tamale, 100.3 in Cape Coast and on our affiliates Azay FM 89.1 in Takoradi, Bead FM 99.9 in Bimbilla, Mining City 89.5 in Tarkwa, Sissala Radio 96.3 in Tumu, Somuaa FM 89.9 in Gushegu, Stone City 90.7 in Ho and Wale FM 106.9 in Walewale
Tune in to broadcasts online: asaaseradio.com, Sound Garden and TuneIn
Follow us on Twitter: @asaaseradio995
Live streaming on facebook.com/asaase99.5. Also on YouTube: AsaaseXtra.
Join the conversation. Call: 020 000 9951 or 059 415 7777. Or WhatsApp: 020 000 0995.
#AsaaseRadio
#TheVoiceofOurLand
#WeAreHere
#WeLoveOurLand
