Takatso Consortium’s mooted deal to acquire a majority stake in embattled national carrier South African Airways hit a snag on Monday after one of the partners in the transaction, Gidon Novick, threw in the towel.
Novick was quoted in a News24 article attributing his resignation from the Takatso board to his concerns about a lack of communication and the consortium’s ability to raise enough money. However, a statement by Takatso paints a different picture.
“Takatso appreciates the resignation of Syranix’s nominated director, Mr Gidon Novick from its Board and deems it appropriate in the circumstances given Novick and LIFT’s (Syranix and Global, who remain shareholders in Takatso) inherent conflicts of interest in relation to the SAA Transaction,” Takatso said.
“LIFT is a competitor to SAA and the Takatso Board had identified the potential conflicts of interest between the Consortium and LIFT and has sought to manage these throughout the course of the transaction. This includes the establishment of appropriate confidentiality and information management regimes in the spirit of maintaining fair competition in the South African airline market and in compliance with South Africa’s competition regulations.”
The consortium insisted the deal which has drawn criticism from several quarters was on course to be concluded and was awaiting clearance by the competition authorities and seeks to comply with the relevant authorities.
Takatso further sought to dispel Novick’s assertions that there was lack of funding to conclude the deal.
“Takatso, (as funded and led by Harith General Partners Pty Ltd) continues to work closely with the team from the Department of Public Enterprises to conclude the acquisition of a controlling interest in SAA. Additionally, Takatso has developed a business plan for a sustainable and competitive SAA endorsed by international aviation experts.”
In May last year, Gordhan said the state had sold 51% stake in embattled national carrier SAA to Takatso consortium. The deal, he said at the time, would see Takatso take 51% ownership of SAA, with the government retaining a 49% stake. Gordhan said Takatso would inject R3-billion into a new SAA.
Takatso consists of Global Airways, which owns low-cost airline lift, as technical partner, and infrastructure investment firm Harith. The equity partner in Global Airways is Novick, who was said would serve as Takatso’s CEO.
Sunday World reported last month that suspended Public Enterprises Minister Kgathatso Tlhakudi told his disciplinary hearing that around January 26 2021, Novick contacted him, indicating he had had engagements with Gordhan on providing interim management expertise to SAA. Around that time, Tlhakudi also alleged that Gordhan also contacted him, “impressing upon me the credentials of Mr Novick”
He said Gordhan then introduced Novick to Harith. He added that Harith boss Tshepo Mahloele referred to Novick and Global as his “white economic empowerment” partners.
Takatso dismissed the allegations as “malicious and defamatory”.
It said the relationship between Novick and Mahloele pre-dated the SAA transaction. They were introduced to each other by an adviser who was assisting Mahloele with his business interests.
“During this time, Mr Novick was looking to attract an investor to his newly launched airline, Lift. When the adviser established synergies between the two parties, owing to Harith’s vast investments in the transport and aviation sectors, a business relationship was kindled between the two parties. Any assertion to the contrary is false.”
For more business news from Sunday World, click here.
Follow @SundayWorldZA on Twitter and @sundayworldza on Instagram, or like our Facebook Page, Sunday World, by clicking here for the latest breaking news in South Africa. To Subscribe to Sunday World, click here
