SOUTH Africa’s minister in charge of embattled state-owned companies gave an impassioned defense of the sale of a majority stake in the national carrier for about $3 — a deal that’s subject to a lawsuit from one of the spurned bidders.
The privatisation of South African Airways (SAA) is a vital reform for the country’s battered economy, Public Enterprises Minister Pravin Gordhan, 73, said in an interview at Bloomberg’s Johannesburg office.
The winning bidder — a partnership between a domestic aviation group and private equity firm — was the one left with the most credible financial backing and industry experience, he said.
The airline is an “example of a broken state-owned enterprise that has been loss making, that we have successfully re-positioned and got the private sector involved,” said Gordhan. Discussions with ratings companies suggest the move is “a classic example of reform.”
The acquisition by the Takatso Consortium has
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