JOHANNESBURG — The due diligence on a deal for Takatso consortium to buy a 51% stake in state-owned South African Airways (SAA) was substantially complete, and no material issues have been identified, the consortium said on Thursday.
The government said it was selling a majority stake in SAA to the consortium in June as part of efforts to curb bail-outs to struggling state companies that have placed a huge strain on stretched public finances.
SAA said on Wednesday that it planned to restart flights next month after operations were mothballed in September last year. It exited business rescue in April.
“Takatso will now move ahead with concluding a share purchase agreement for 51% of SAA with the Department of Public Enterprises,” the consortium said in a statement. “The agreement will be subject to various approvals and pre-conditions, which are likely to take some time.”
Takatso is a joint venture between investor group Harith and Global Aviation.
The government is retaining 49% of SAA and will have a “golden share” of 33% of the company’s voting rights and certain areas of national interest. The government will be responsible for all of SAA’s historical financial liabilities, with the consortium injecting new capital.