FRIDAY, 11.00AM
TWO of the bidders shortlisted for a 100% stake in parastatal Sun Air have submitted offers for the airline, both of which are believed to fall well short of the R100-million government had hoped to raise by selling the airline.
Public Enterprises Minister Stella Sigcau and Transport Minister Mac Maharaj on Thursday announced that the Rethabile/Comair consortium and Phoenix Venture Partners had submiitted binding bids.
It is believed that the offers are for between R35-million and R50-million, well below the R100-million price governmewnt had hoped for. There have been indications that if government does not receive a satisfactory offer, the sell-off will be halted pending the partial privatisation of SA Airways. It appears that due diligence audits have shown Sun Air’s asset value at about R50-million, with a significant capital injection required to keep the airline operating.
The other two shortlisted consortia have pulled out of the running. The Bhekilanga consortium was stymied by the pull-out of its partner Virgin Atlantic Ailrines, and Malaysia Air decided not to contiue with a bid. It is believed both Virgin and Malaysia Air are interested in buying a stake in SAA.