The Competition Tribunal has given Takatso Consortium’s proposed purchase of a 51 percent shareholding in South African Airways (SAA) the green light in a decision the Department of Public Enterprises hailed as a significant step in the government’s efforts to consolidate the re-emergence of the national carrier as a key strategic asset.
In a statement on Tuesday night, the Tribunal said it approved the transaction subject to conditions involving a moratorium on retrenchments and divestiture of the shareholding by the minority shareholders in the Takatso consortium.
It did not provide further details for its decision, saying its reasons will be issued in due course.
The Tribunal’s decision sets Takatso and the department firmly on course to finalise other critical regulatory requirements to conclude the transaction aimed at turning SAA into a competitive, profitable, and viable carrier, both locally and internationally, the department said in a statement.
Public Enterprises Minister Pravin Gordhan said the approval sent a strong message about the extent of the hard work that has gone into the transaction, considering that SAA was on the brink of liquidation.
“With this decision, the Competition Tribunal has affirmed our belief as the government that a revitalised and a well-capitalised SAA presents the country with significant opportunities to boost economic connectivity and strategic reach that should benefit our economy and our people for years to come. I am confident that the repositioning of SAA sets a very good example of what can be achieved when the right financial and operational framework is given to state-owned companies so they can fulfil their mandate to advance our economic transformation and development as a country,” said Gordhan.
Cape Times