The Department of Public Enterprises, which is the custodian of the country’s state-owned enterprises, is still confident about the SAA deal, it said on Friday.
In May 2021, Public Enterprises Minister Pravin Gordhan said the government had sold a 51% stake in embattled 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 the new national carrier.
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 Gidon Novick, who was tipped to serve as Takatso’s CEO.
However, Novick threw in the towel this week.
He 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.
In a statement, Gordhan’s department said the deal was not at risk. “Government is awaiting the completion of the regulatory processes and thereafter will finalise Takatso’s acquisition of the 51% shareholding in SAA,” said the department.
“The deal is not at risk. We condemn the deliberate misinformation and casting of doubt about the transaction and regulatory processes since the resignation of Gidon Novick as a board member of the Takatso consortium.”
The department further said it is confident that Takatso will introduce the required technical, financial, and operational expertise into the business.
“DPE [Department of Public Enterprises] wants to thank the traveling public and loyal SAA customers for their continued support. Your support has helped to create over 800 jobs for pilots, cabin crew and other workers.
“Their jobs are being endangered by the selfishness, reckless behaviour and greed of certain elements. The SAA team will do everything possible to ensure SAA grows from strength to strength and provide much-needed service to the traveling public given the shortage of capacity in SA.”
In a statement, Takatso sought to dispute Novick’s version of events.
“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.”
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], 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.”
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