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On Wednesday, the minister was asked for details of possible private equity partners and guarantees regarding the debt of the state airline.
FILE: Public Enterprise Minister Pravin Gordhan at a press conference at the Lethabo power plant. Photo: Abigail Javier / EWN
CAPE TOWN – Public Enterprise Minister Pravin Gordhan said on Wednesday that the government had received a number of expressions of interest from potential South African Airways (SAA) investors.
Gordhan responded to questions from the National Assembly as part of the government’s economic group.
He was asked for information on possible private equity partners and guarantees regarding the debt of the state airline.
The minister said that the process to establish contact with private equity partners has reached an advanced stage.
He said that while he was unable to provide details, several potential partners have already made their intentions clear.
“The process has reached an advanced stage and we expect it to be concluded in late December, early January or early 2021. Due to the delicate commercial nature of these negotiations, we cannot pronounce at this stage on the details of the expressions of interest”, Gordhan said.
Gordhan also informed MPs that the R10.5 billion ransom would likely increase by about R4 billion in the end.
“The total cost of the restructuring is 14 billion rand. The money will be used to pay for staff layoffs and voluntary severance packages, ”he said.
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