for subscribers

EXCLUSIVE I Gordhan on why capital injection into SAA readies airline for equity sale

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
0:00
play article
Subscribers can listen to this article
In Gordhan's view there is a place for a South African-based "national carrier".
In Gordhan's view there is a place for a South African-based "national carrier".

The R10.5 billion allocated to South African Airways in this week's medium-term budget is not to relaunch a "new SAA", but is needed in order to make a new airline a value proposition for a strategic equity investor, according to Minister of Public Enterprises Pravin Gordhan.

Speaking to Fin24 after Minister Tito Mboweni delivered his budget on Wednesday, Gordhan said the flag carrier is like an old car which has the potential to be jacked up.

"You have to do what is necessary to make the new entity a value proposition and a meaningful partnership to an equity investor. This will be a straight-forward commercial process," Gordhan told Fin24.

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
ZAR/USD
15.21
(+0.91)
ZAR/GBP
20.31
(+0.88)
ZAR/EUR
18.08
(+0.71)
ZAR/AUD
11.19
(+0.24)
ZAR/JPY
0.15
(+1.06)
Gold
1807.64
(-1.54)
Silver
23.20
(-1.30)
Platinum
960.00
(+3.66)
Brent Crude
45.51
(+2.15)
Palladium
2340.00
(+0.48)
All Share
57761.92
(+1.08)
Top 40
53049.43
(+1.09)
Financial 15
11674.99
(+2.97)
Industrial 25
80126.12
(+0.26)
Resource 10
52568.48
(+1.54)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
22% - 321 votes
No, I did not.
51% - 754 votes
My landlord refused
28% - 408 votes
Vote