Politics played no role in termination of deal to buy SAA, says Takatso Consortium
The consortium and Public Enterprises Minister Pravin Gordhan on Wednesday announced the deal to buy a 51% stake of the airline was terminated after three years of negotiations.
Takatso director Tsepho Mahloele and spokesperson Thulasizwe Simelane briefing the media on 13 March 2024 about the failed SAA deal. PIcture: Babalo Ndenze/Eyewitness News
CAPE TOWN - The Takatso Consortium says politics did not play a role in the termination of a deal to buy South African Airways (SAA).
The consortium, which was a strategic equity partner, was set to purchase a 51% majority stake in the airline.
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However, on Wednesday, Minister of Public Enterprises Pravin Gordhan and Takatso both announced a decision to pull out of the deal after three years of negotiations.
Takatso said that the revised transaction terms were no longer in the best interests of its stakeholders.
It said these included the “cumbersome” condition imposed by the Competition Tribunal in its minority shareholding and the need to receive further legal and regulatory approvals.
However, Takatso Consortium director Tshepo Mahloele said there was no need for any recourse, despite a wasted three years.
“I can’t say it was a cheap process. However, it’s par for the course getting involved in these types of things, and there will be no recourse that anyone will be pursuing against the other.”
He said even within the governing party, the African National Congress, there were differing views on the deal.
“To deny that pressure and noise was bearable would be completely honest. It was just too much, but it’s not what led to this.”
Takatso said both parties continued to believe in the merits and benefits of the proposed transaction but needed to end it.