SAA after Business rescue

[Ugly Duckling]

I had to book a flight to Windhoek last week. I looked at the Flight Centre, Travel Start and Cheap flights for what was available, skipped the SAA V2 offers, went straight to Flyairlink.com paid about R2000 more for the ticket.
There is a big SAA billboard leaving Windhoek on the road to the airport proclaiming "Connecting Africa one flight at a time"
The Airlink E190 was 20 minutes ahead of schedule on both flights

[FAQ]

There is a big SAA billboard leaving Windhoek on the road to the airport proclaiming "Connecting Africa one flight at a time"
The Airlink E190 was 20 minutes ahead of schedule on both flights

Yip, and Airlink connects Africa with more than one flight at a time!

[ZX357]

https://www.iol.co.za/news/politics/how ... 2d4dc2e45b

How Takatso was appointed to be strategic equity partner for SAA


The portfolio committee on public enterprises will meet and review confidential information it received on the sale of the majority stake at the South African Airways to Takatso consortium.

Chairperson of the committee Khaya Magaxa said after they met in camera with Minister of Public Enterprises Pravin Gordhan and the legal adviser confirmed that the information shared with them was confidential.

Gordhan had written to Magaxa to say the documents could not be made available publicly because of commercial sensitivity.

Magaxa said on Thursday they have been taken through the documents by Parliament’s legal adviser.

However, they will scrutinise the documents and take a decision.
“During the committee’s engagement with the legal adviser yesterday, he confirmed that the information before them is confidential. The committee will now review the information provided in a closed session, specifically the Single Source Provider Application,” said Magaxa.

“This is due to the ongoing nature of the transaction and the absence of definitive outcomes. The committee has received the legal advice it sought and will now deliberate on how to proceed with the information under the proposed confidentiality regime. It will schedule another meeting to finalise the matter.”

He added that they had received the documents from Gordhan.

As Gordhan had argued that the documents were confidential the committee asked the legal adviser to view them.

“According to the documentation provided to the committee, it is evident that Takatso Consortium was not included in the shortlist when the RMB evaluated the expressions of interest from potential SEPs (strategic equity partners). The evaluation phase identified ASL Blue Sky Consortium and Fairfax Consortium as the most promising, but their inability to provide proof of funding hindered their selection. As a result, no suitable SEP with funding evidence could be found.”

But the transaction adviser Rand Merchant Bank pulled out of the contract and the department took over the process.

Both ASL Blue Sky and Lufthansa were disqualified as potential strategic equity partners for SAA.

“Meanwhile, proposals from Global and Harith were rated favourably by the evaluation committee, as indicated in letters from the former DG to both entities, and they were both shortlisted as significant airlines of interest on April 8, 2021. The possibility of combining Global and Harith to complement each other in their long-term strategy was also mentioned.”

Global and Harith, which later became Takatso consortium made an offer to the department that met all the requirements. This included making funding available to restart operations at SAA.

Cabinet then appointed Takatso as the preferred strategic equity partner for the airline.

[propstrap]

From Daily Maverick...

[Ned Yakman]

Why is the South African government holding on so desperately to SAA? Can someone explain this to me?

Money laundering maybe?

For what it's worth, and not excusing the current mobsters for one moment, but they're not the first government to fail at partially privatising SAA. In the early '90s De Klerk's gang promised to do the same, but there was some resistance within the Nat party. At the time they said they'd list the airline on the JSE after 3 consecutive years of profitable trading (which didn't happen). As much as I hate to give him any credit, Coleman Andrews (with Thabo Mbeki's and Stella Sigcau's top cover) was the only one to achieve this when he negotiated the 35% SEP with SR Group. Unfortunately SR Group turned out to be a dud and the SA Govt bought back the shares at a tidy little profit.

[Chalkie]

Why is the South African government holding on so desperately to SAA? Can someone explain this to me?

Money laundering maybe?

For what it's worth, and not excusing the current mobsters for one moment, but they're not the first government to fail at partially privatising SAA. In the early '90s De Klerk's gang promised to do the same, but there was some resistance within the Nat party. At the time they said they'd list the airline on the JSE after 3 consecutive years of profitable trading (which didn't happen). As much as I hate to give him any credit, Coleman Andrews (with Thabo Mbeki's and Stella Sigcau's top cover) was the only one to achieve this when he negotiated the 35% SEP with SR Group. Unfortunately SR Group turned out to be a dud and the SA Govt bought back the shares at a tidy little profit.

Unfortunately Coleman was given the go ahead (by Sakie Macozoma) to sell everything and write impressive numbers in the books. This he did and then the bills started rolling in for all the previously paid for and owned - now rented, buildings and aircraft... Coleman walked away with all his ('soon to be listed' shares) paid out at a previously agreed USD price... The whole lot stinks.

I remember the first ever meeting in the auditorium where Coleman addressed the pilot body, he tried to impress us that he was the all conquering hero, there to save SAA. A few astute questions from some of the members soon brought him down to earth and the promised weekly 'feedback' talks soon stopped when he learned that the pilot body did not believe the corporate/government narrative.

[Burner]

https://www.news24.com/fin24/companies/ ... n-20240313

The deal to sell 51% of SAA to the Takastso consortium is off, Minister of Public Enterprises Pravin Gordhan announced on Wednesday.

The deal, which was first agreed in June 2021, has faced numerous obstacles. Among them has been the need to revalue the assets of SAA due to the lengthy time between the original agreement and the final agreement on the sale of shares.

Gordhan said he had given an update to the Cabinet on Wednesday morning.

"As a result of various factors, we have come to the point where those negotiations (with Takatso) will no longer continue. Our search for the right partner for SAA will not happen through this process," he said.

[marius scheepers]

https://www.news24.com/fin24/companies/ ... n-20240313

The deal to sell 51% of SAA to the Takastso consortium is off, Minister of Public Enterprises Pravin Gordhan announced on Wednesday.

The deal, which was first agreed in June 2021, has faced numerous obstacles. Among them has been the need to revalue the assets of SAA due to the lengthy time between the original agreement and the final agreement on the sale of shares.

Gordhan said he had given an update to the Cabinet on Wednesday morning.

"As a result of various factors, we have come to the point where those negotiations (with Takatso) will no longer continue. Our search for the right partner for SAA will not happen through this process," he said.

Is that even such a surprise???

[A390]

Letter from DPE

[Johan Swakopmund]

We all knew it.
And how many millions or is it bilions later ?
Are they going to drag it out or do what Namibia did ?

Johan

[Whirly]

I only caught the end of what Gordhan said on TV tonight, and all I heard was him saying that he told the staff (at SAA) not to worry about their jobs and future.

Whirly.

[jimdavis]

I only caught the end of what Gordhan said on TV tonight, and all I heard was him saying that he told the staff (at SAA) not to worry about their jobs and future.

Whirly.

I suspect this is the beginning of the end and SAA employees should be very worried. And the rest of us utterly relieved.

jim

[Whirly]

I only caught the end of what Gordhan said on TV tonight, and all I heard was him saying that he told the staff (at SAA) not to worry about their jobs and future.

Whirly.

I suspect this is the beginning of the end and SAA employees should be very worried. And the rest of us utterly relieved.

jim

Jim,

Like I said, I just caught the tail of his speech. My take is, that he assured them of their jobs come hell or high water. Sounds like they are going to keep it going.

Whirly.

[Burner]

Great analysis as always by GL.



The Gordhan media briefing earlier today.

[Fransw]

More of the same...

https://www.moneyweb.co.za/news/south-a ... d-gordhan/