Govt plans to table new bill that could move SAA sale closer to finalisation
The minister of public enterprises said the purpose of the Repeal of the South African Airways Bill was to facilitate the repositioning and restructuring of SAA through the introduction of a strategic equity partner.
South African Airways planes. Picture: Facebook
CAPE TOWN - The sale of South African Airways (SAA) could be taking another step closer to finalisation, with government announcing its intention to table a bill in Parliament soon that will allow for shares to be transferred to a private partner.
The Repeal of the South African Airways Act of 2007 is one of two bills that will reposition state-owned enterprises.
The public enterprises minister has also given notice in the government gazette that he will also table the National State Enterprises Bill in the coming weeks, that will place the control of parastatals under a new holding company.
The minister of public enterprises said the purpose of the Repeal of the South African Airways Bill was to facilitate the repositioning and restructuring of SAA through the introduction of a strategic equity partner.
The Takatso Consortium is expected to come up with R3 billion in exchange for a 51% stake in the airline.
Repealing the SAA Act is one of the sale and purchase conditions.
It means the public enterprises minister will no longer have sole shareholder rights nor majority voting powers.
However, Democratic Alliance (DA) MP Alf Lees said he hoped in the interim that government had negotiated a better selling price for the airline.
"Right from the beginning, many of us have said it was a gift - a debt-free airline. Fifty-one rand for 51% of the shares was outrageous."
Should the SAA sale not proceed, the airline’s shares could be moved to a new holding company that will be created under the National State Enterprises Bill.