A second valuation of SAA’s assets after the COVID-19 pandemic more than doubled their value. Credit: Niel Goosen/Shutterstock.com

The South African Government has abandoned plans to sell a stake in its flag carrier airline, South Africa Airways (SAA), after discussions with a prospective buyer fell through. 

The country’s Department of Public Enterprises (DPE) confirmed that the three-year long negotiations on divesting a 51% stake in the airline to Takatso Consortium had been terminated after both parties failed to agree on a revised transaction structure. 

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The DPE confirmed that it had taken the decision to revert SAA to 100% state ownership and informed the board of the company to create a corporate plan for the future of the airline, including a bigger fleet and more routes. 

Public Enterprises Minister Pravin Gordhan told reporters: “We are convinced that SAA can sustain itself in the next year to 18 months, and that there are various other ways in which immediate financing can be obtained. But at no stage will SAA get money from the fiscus.” 

SAA, which was once the biggest airline in Africa, had been on the verge of liquidation when talks to sell a stake in the business began, with a valuation of its assets at the time, during the COVID-19 pandemic, placing them at R2.4bn ($129m). 

See Also:

However, thanks to the boost seen in the aviation market as restrictions eased, a second valuation saw the airline’s assets valued at R5.5bn and the business valued at R1bn, leading to a renegotiation of terms that saw Takatso decide the deal was no longer in its shareholder’s interest, despite the acquisition receiving approval from South Africa’s competition authority in July 2023. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The DPE said that a “new form of raising finances” would now be explored for SAA with financial institutions and confirmed it would brief the airline’s staff as the company “enters a new chapter of its life”.