PIC Sets Record Straight on SAA Funding
Written by Mfundo on 14 June, 2021
By: Lindelani Mbatha
The Public Investment Corporation (PIC) has confirmed that it is not funding the 51% stake acquisition in South African Airways (SAA).
The confirmation comes after media reports and comments over the weekend suggesting that PIC funds will be used for the acquisition of the stake by Takatso Consortium.
Last week, Public Enterprises Minister Pravin Gordhan announced that government has sold its 51% stake to the strategic equity partner in a bid to save the financially embattled airline.
The state will retain 49% of the airline, SAA, was placed under business rescue in December 2019, a process which concluded in April this year.
In a statement the PIC says is not involved in this acquisition, nor are the assets that it manages on behalf of clients.
However, the Public Investment Corporation owns 30% of Harith General Partners and some of the individuals involved in Takatso Consortium may previously have been associated with the PIC.
The corporation says Harith General Partners and the Takatso Consortium did not involve the PIC in any way in the acquisition.