Nationwide Airlines will sell a majority stake to black investors that will result in the company’s recapitalisation, Business Report said on Wednesday.
In a letter sent to employees on Tuesday, Vernon Bricknell, Nationwide’s chief executive, said: ”We have now concluded negotiations with black investment partners — which will ultimately result in the investment partners acquiring the majority shareholding of Nationwide Airlines and the group of companies.”
Bricknell said the investors, whom he declined to name, would bring resources to the table, including the company’s recapitalisation.
He said the deal was not related to Nationwide being in financial trouble.
Asked about the rationale for the deal, he said: ”Its been our objective to go black economic empowered for some time and this particular party wanted a majority stake.”
In the next few weeks Nationwide will discuss with staff plans for fleet renewal, employee shareholding options and improvement of services, among other matters.
These discussions are likely to be concluded in April or May.
Bricknell assured staff that their jobs were secure.
”The intention is to grow the airline, introduce more expertise in key areas and expand our network.” – Sapa