South African Airways’ drawn-out privatisation deal collapses as parties agree cancellation

South Africa’s government and an investment consortium have ended public-private partnership plans for South African Airways under which the consortium would have taken a majority share in the flag-carrier. The Takatso consortium had been unveiled as a potential investor in SAA some two-and-a-half years ago. But finalising the agreement has been a drawn-out process and the country’s department of public enterprises says it has terminated the transaction with Takatso “by mutual agreement”. “The new corporate plan will embrace more routes and more aircraft,” it states, adding that a strategic advisor will be sought to support the airline’s management in its next steps.<br/>“A new form of raising finances on the basis of the assets of SAA will be explored with financial institutions.” Takatso had intended to take a 51% share of SAA. But it says the transaction is “no longer in the interests of its stakeholders”. “Protracted negotiations for a revised transaction structure introduced unacceptable levels of risk and uncertainty,” it states. Takatso adds that the opportunities in the sector on which it had hoped to capitalise have been “greatly diminished” since the original share-purchase agreement was reached in February 2022.<br/>