The Competition Tribunal has approved Takatso Aviation’s proposed acquisition of a 51% stake in South African Airways (SAA).
- The deal is subject to conditions, including a moratorium on retrenchments and a sale of the stake held by minority shareholders.
- The Tribunal’s decision followed a recommendation by the Competition Commission in May that the deal be approved with conditions.
- The minority partners in the consortium, Global Aviation and Syranix, which co-owns LIFT airline, will have to exit to avoid decreasing competition in the domestic passenger market.
- These minority shareholders have already indicated they are willing to sell, but have expressed regret at the need to do so.
- The consortium will obtain 51% of SAA’s shares and provide the airline with a capital injection of R3 billion over two years.
- The Department of Public Enterprises (DPE) will keep 49% of SAA’s shares as the government’s shareholder representative.
- Takatso Aviation consists of infrastructure investment firm Harith (80%), Global Aviation (10%), and Syranix (10%).