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Global/Syranix challenge sidelining in SAA deal

The minority shareholder in the Takatso Consortium is to challenge its recommended sidelining in the sale of South African Airways (SA, Johannesburg O.R. Tambo) before South Africa's Competition Tribunal.

"Our main challenge will be that we have not, as reported, agreed to sell our shares," confirmed Gidon Novick, who represents Takasto minority shareholders Global Aviation Operations and management consultancy Syranix, which also own the Lift Airlines (LIFT) brand that competes with SAA domestically.

The Competition Commission, which advises on antitrust matters, sees a conflict of interest between Global/Syranix's ownership of LIFT and its planned co-ownership of SAA. It has made the minority shareholders' divestment from Takatso a condition for approving the semi-privatisation deal that would see Takatso take a 51% share, with the government retaining 49%. Takatso's majority shareholder is Harith General Partners, an asset management firm that owns Lanseria airport near Johannesburg. Novick says Global/Syranix have also reached out to Harith to find a solution.

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Global/Syranix refuse to be sidelined in SAA privatisation

The semi-privatisation of South African Airways (SA, Johannesburg O.R. Tambo) remains mired in politics, with a minority strategic equity partner (SEP) refusing to be sidelined as proposed by South Africa's competition watchdog.

Global Aviation Operations (GE, Johannesburg O.R. Tambo) and management consultancy Syranix deny they agreed to divest from the Takatso consortium, the government's preferred SEP, as a condition for regulatory approval of the deal. "We have not agreed to divest from Takatso/SAA and remain open to finding a way to share the deep local skills and experience we have in order to build a sustainable regional and international airline and an iconic South African brand," Global Aviation/Syranix representative and former Takatso CEO Gidon Novick told ch-aviation.

The Competition Commission, an advisory body, has recommended that the country's decision-making Competition Tribunal approve the proposed sale of 51% of SAA to Takatso. But first, it wants Takatso's minority partners – Global Aviation/Syranix – to divest from the consortium fully. This follows competition concerns over Global's ownership of Lift Airlines (LIFT), which competes domestically...

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