SAA could still get private equity partner, but State would be major shareholder - DPE's Bapela

Source: EWN Traffic
Author: Babalo Ndenze

CAPE TOWN - Deputy Public Enterprises Minister Obed Bapela says South African Airways (SAA) could still get a private equity partner in the future, but the State would be the major shareholder.

The deputy minister was answering questions from Members of Parliament (MPs) on the failed SAA-Takatso deal as part of the economic cluster of ministers.

Bapela also said SAA will be flying solo for the next 18 months without any private partner and is also not in line for any state bailouts.

He did not rule out getting another strategic equity partner for SAA following the failed transaction to sell a majority stake. But said the State must have majority control next time around.

"And therefore, we are not ruling out that possibility. So it will be there, but the State will remain a majority... not to privatise it where we are a minority," Bapela said on Wednesday.

He added that the airline is performing well and doesn't need a bailout.

"There is optimism regarding the future of the airline and the idea that it will depend on government bailouts going forward should be disregarded."

The public enterprises committee also adopted its report that calls for further investigation into the deal.