'Little-known' company sues govt over R51 sale of SAA majority stake
A "little-known" investment firm is suing the government and South African Airways (SAA) over the sale of the majority stake in the embattled airline.
Toto Investment Holdings wants the sale scrapped and re-run reports Bloomberg News.
51% of SAA was acquired by the Takatso Consortium for the sum of R51, with the Department of Public Enterprises retaining a 49% share.
Takatso will invest R3 billion in the national carrier over the next two years.
Motheo Khoaripe (in for Bruce Whitfield) interviews Bloomberg journalist Loni Prinsloo.
They [Toto] currently own some investments... one of the bigger ones is a part of the stake in Rio Tinto's Richards Bay Minerals...Loni Prinsloo, Journalist - Bloomberg News
They were also an interested buyer in South African Airways... The biggest complaint was that the whole process was shrouded in secrecy... This was also brought up by National Treasury, opposition parties and some media houses... that the process wasn't very transparent.Loni Prinsloo, Journalist - Bloomberg News
Toto now wants the whole deal to be set aside and started over with a new equity partner, says Prinsloo.
While the transaction officially went through in February, the court bid could potentially hold up some of its future workings she adds.
It will definitely have an impact on trying to raise future capital... Other interested buyers... could also potentially be unhappy about the way the deal was handled.Loni Prinsloo, Journalist - Bloomberg News
For more detail on the court case take a listen:
This article first appeared on CapeTalk : 'Little-known' company sues govt over R51 sale of SAA majority stake
Source : https://www.123rf.com/stock-photo/south_african_airways.html?oriSearch=saa&sti=n8wqyoe1mwzlg0c4x4|&mediapopup=110937089
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