S. Africa hires RMB to advise on possible airline stake sale

South Africa’s Rand Merchant Bank, the investment banking arm of FirstRand, has been appointed as an adviser to help the government assess offers for stakes in its insolvent national airline, according to two people familiar with the situation. The state is looking to raise more than 10b rand ($575m) that South African Airways administrators say is needed to revive its operations eight months after going into bankruptcy protection. Finance Minister Tito Mboweni has said the National Treasury will not use its own money, beyond 16.4b rand in existing debt guarantees, and will instead seek “strategic partners” or private-equity backers as well as tapping pension funds and global financial institutions. “The Department of Public Enterprises has identified a transaction adviser,” the ministry said in a statement on Wednesday, without identifying the firm. “The advisers are expected to assess unsolicited expressions of interest from private-sector funders, private-equity investors and partners for a future restructured SAA.”<br/>