Treasury to test water on equity partner for carrier
Among the options is the possible disposal of some of the state's more liquid assets to raise funding for the airline
The National Treasury is set to issue a request for proposals from interested parties for a strategic equity partner for SAA. The cabinet approved the process in April in order to test market appetite. SAA CEO Vuyani Jarana said an oversight committee led by Deputy Finance Minister Mondli Gungubele was defining the capital structure to determine the mix of debt and equity and the funding structure. The committee's deadline is September. "It's important that SAA does get a strategic equity partner ... what you get is operating leverage, you get deep insights in terms of what's happening in different parts of the world," said Jarana. The Treasury needs to recapitalise the airline, which is in dire need of R21.7-billion to implement its turnaround strategy within three years. A consortium of lenders led by Nedbank recently approved a R5-billion bridging facility to pay suppliers and for working capital.6 The number of African destinations in the top 10 flown by SAA last year, according...
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