/ 30 June 1999

ANOTHER 20% OF SAA ON THE BLOCK

JUST days after President Thabo Mbeki announced that Swissair will acquire a 20% stake in South African Airways at a cost of $240-million, the government said moves are under way to privatise a further 20% of the national airline. Swissair last week won the bid, beating Germany’s Lufthansa with partner Singapore Airlines, American Airlines and US-based private investment firm Texas Pacific Group. Zaid Nordiene, a spokesman for the Department of Public Enterprises, said the deal with Swissair gives it the option to buy a further 10% of South African Airlines within the next six months. He said a further 10% will likely be offered to the nation’s statutory National Equity Fund and black empowerment partners.