New deal introduced unacceptable levels of risk: Takatso Aviation

Reading Time: < 1 minute

Takatso Aviation says the new renegotiated transaction structure for the purchase of 51% of SAA introduced unacceptable levels of risk and uncertainty.

Earlier, Public Enterprises Minister Pravin Gordhan announced that the deal with Takatso to buy a majority shareholding in SAA had been called off.

Takatso says the magnitude and materiality of the proposed changes had made it clear that the transaction would possibly need to be re-submitted to the Competition Tribunal.

Another stumbling block was resolving the issue of minority shareholders as directed by the Competition Tribunal.

Takatso Aviation Director Tshepo Mahloele says, “Takatso under these conditions, concluded the revised transaction terms [that] were no longer in the best interests of stakeholders, especially in light of further … unfulfilled transaction [and] closing conditions that still needed to be wrapped up.”

“And amongst these was the cumbersome divestiture conditions imposed by the Competition Commission, tribunal,” adds Mahloele.

Gordhan announces SAA-Takatso deal is off: Khaya Sithole weighs in