Public Enterprises Deputy Minister Obed Bapela has not ruled out the possibility of SAA getting another strategic equity partner should it get into financial difficulties.
Responding to oral questions in the National Assembly on Wednesday, Bapela said in the trend where strategic equity partners had a stake in state-owned airlines, the state was a majority shareholder because their timing was perfect in terms of realising some troubles in the market and crowd in the private sector.
He said the state would retain 60% of the shares and it has initially been the case with the failed SAA-Takatso deal.
“At the point of 12 to 18 months, we will look at the market volatility and look at strategic equity partners that might be necessary.
“We are not ruling out that possibility but the state will be a majority, not to privatise where we are a minority. We want to assure South Africans on that one,” he said.
Bapela also said should a strategic partner be sought again, there would be a transparent process.
“We have learnt lessons from the previous one so that everyone can see and do their analysis why we need this strategic equity partner. We will not wait until there is trouble.”
Bapela said the privatisation was not the policy of the ANC and the sale of SAA shares to private people was because of conditions that existed at the time while it was under business rescue.
When the negotiations took place with Takatso Consortium, it was a matter of take it or leave it, as Takatso was the only bidder.
“60-40, that unfortunately, could not be achieved because the airline was in trouble, was grounded.”
Bapela also said the details of the deal were not kept secret but it was due to the negotiations.
“Should you need those details – if you ask them to be published because the deal is not there and the public wants, it is something that can be looked at.”
However, the deputy minister said Public Enterprises Minister Pravin Gordhan had indicated when he announced the cancellation of the SAA-Takatso deal that there would be no need for a strategic equity partner for the next 12 to 18 months.
“SAA is doing well and will continue to do so. What happens beyond 18 months, an analysis in the market will have to be looked at and the seventh administration will look at the matter,” he said.
Bapela also said despite the termination of the deal, there was optimism regarding the future of the airline.
“The idea that it will depend on government bailouts going forward should be disregarded. With SAA showing improved financial position, it can remain self-sustaining. Alternative avenues or immediate financing are available and are currently being explored.”
Cape Times