Pravin Gordhan, South Africa’s Public Enterprises Minister overseeing the company said on Wednesday the government and Takatso had agreed but “there was no clear path forward” for the transaction after a new business and asset valuation. The South African government had been negotiating the deal for three years.
The airline was on the verge of being liquidated before it entered a form of bankruptcy protection in 2019.
Its finances worsened as the COVID-19 pandemic restricted air travel and depleted its already minimal cashflow, forcing the government to hunt for a strategic equity partner to keep it afloat
The government announced the planned deal to sell a controlling stake in SAA to the Takatso Consortium in 2021, part of efforts to end recurring bailouts to the flag carrier.