Potential Mango investor needs to bring at least R200 million to the table

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Interested parties have until 17:00 on 20 December 2021 to express their interest to the rescue practitioner.
Interested parties have until 17:00 on 20 December 2021 to express their interest to the rescue practitioner.
  • Investors have been invited by Mango's business rescue practitioner to express an interest in acquiring all the share capital of the low-cost airline.
  • Any investor would have to be able to show it has access to at least R200 million.
  • The rescue practitioner hopes that the due diligence process will be completed by 14 February next year.


Any investor who wants to buy low-cost airline Mango would have to be able to show it has access to at least R200 million.

According to a bid process letter dated 2 December and seen by Fin24, any bidder would have to be able to provide a letter from a reputable bank or finance institution proving that "the interested party either has existing facilities or will be in a position to secure such facilities amounting to a minimum of R200 million to enable Mango to resume operations and provide for the necessary working capital". 

The chosen investor will acquire the entire issued share capital of, and certain claims against Mango Airlines.

"In accordance the decision of SAA’s board, in consultation with the Minister of Public Enterprises Pravin Gordhan that Mango will not form part of SAA’s group of companies moving forward, it is contemplated, as part of Mango’s business rescue proceedings, that a potential bidder acquire the entire issued share capital of Mango from SAA to allow for Mango to continue on a solvent basis," states the bid process letter.

It is proposed that Mango be sold to for a "nominal consideration". The investor's funding will also be used to provide concurrent creditors with "top up" settlement payment to Mango's creditors. 

Thereafter, the remaining balance of claims of concurrent creditors will be ceded to the investor at face value, "but for nominal consideration" after which the investor must deal with it in such a manner that Mango is restored to solvency.

Interested parties have until 17:00 on 20 December 2021 to express their interest to the rescue practitioner. Qualifying bidders will be required to complete their due diligence by 14 February 2022.

"Offers will be evaluated by, among other things, the price offered, speed of closing the proposed transaction, operational capacity and B-BBEEE status and existing potential conflicts of interest between the bidder and Mango," concludes the letter.

The creditors of Mango on Thursday voted to accept an amended proposed business rescue plan for the low-cost airline.

Mango went into voluntary business rescue at the end of July this year and has not flown since. It owes R2.85 billion to creditors, and also has about R183 million of unflown ticket liabilities. The only material asset on Mango's balance sheet is a spare engine that was acquired from SAA and which has a current book value of R97 million.

Mango's shareholder, South African Airways (SAA), has stipulated that the funding it provides cannot be used for Mango to resume operations. 

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