THE south African government has retained special voting rights in the nation's national carrier and will be given US$186 million in preference shares that can be redeemed through future cashflows, reports Bloomberg News.
It means the state should benefit from the new owner, the Takatso Consortium, reviving a carrier that's struggled for years of heavy losses, corruption, and mismanagement.
'The ZAR51 (US$3.51) was a nominal sum set some time ago when South African Airways (S) was not at all a going concern,' said public enterprises minister Pravin Gordhan.
'While now it is still in the recovery phase, things are far better for government than it was when that price was set.'
The details emerged after the National Treasury criticised the terms of the deal, claiming S represents a contingent liability as the government may be liable for certain costs.
SeaNews Turkey
It means the state should benefit from the new owner, the Takatso Consortium, reviving a carrier that's struggled for years of heavy losses, corruption, and mismanagement.
'The ZAR51 (US$3.51) was a nominal sum set some time ago when South African Airways (S) was not at all a going concern,' said public enterprises minister Pravin Gordhan.
'While now it is still in the recovery phase, things are far better for government than it was when that price was set.'
The details emerged after the National Treasury criticised the terms of the deal, claiming S represents a contingent liability as the government may be liable for certain costs.
SeaNews Turkey
