SARAH BULLEN and Reuters, Cape Town | Friday 3.00pm
THE government on Friday appointed Protea Hotels to manage state-owned Aventura Resorts, an initial step towards the privatisation of the loss-making holiday resorts group.
Public Enterprises Minister Jeff Radebe said in a statement the aim of the management contract is to return Aventura to profitability before it is sold off. ”We are critically aware of the urgency of restoring efficiency and profitability in Aventura,” Radebe said.
He said part of the transaction includes a stipulation that Protea brought on board a black empowerment partner. Aventura is estimated to be worth R93-million.
Earlier this month Radebe announced far-reaching plans to speed up the restructuring of state assets — including finding management partners for parastatals such as Aventura, the Post Office and Bop TV. The government earlier this year cancelled the purchase of Aventura in April by the investment arm of the Congress of South African Trade Unions, Kopana Ke Matla, after it repeatedly failed to meet payment deadlines.
Kopano, chosen a the preferred bidder in September last year, failed to make a R25-million payment by March 31 because of lack of financial backing. The total sale price was R93-million ($15,2-million), of which the government would have netted R23-million with the balance allocated to restructuring Aventura’s debt burden and recapitalise the business.