SAA To Remain 100% State-Owned: Sale Negotiations Terminated

Sale of 51% Stake in South African Airways (SAA) to Takatso Consortium terminated

South African Airways A319 aircraft
SAA A319-100 ©J. Grant

The South African Department of Public Enterprises (DPE) announced the termination of negotiations for the sale of a 51% stake in South Afrian Airways (SA) to the Takatso Consortium.

In a statement, the DPE highlighted:

  • Negotiations spanned over 3 years.
  • Disagreement arose regarding a revised transaction structure due to a new valuation – SAA’s valuation increased substantially:
    • Initial valuation during the COVID-19 period, with the airline grounded,  placed the combined business and property value at R2.4 billion.
    • A recent valuation showed significant improvement: R1 billion for the business and R5.5 billion for the properties.
  • Negotiations ultimately failed to meet the requirements of securing a fair market price and upholding public interest.
  • SAA remains state-owned. The government will develop a new corporate plan focusing on route expansion and fleet acquisition.

“In order to support these next steps an aviation strategy advisor will be brought to support the Board and management. The Board needs to be strengthened further.”

DPE Statement on March 14, 2024