Public Enterprises Minister Pravin Gordhan says once a Memorandum of Understanding (MOU) has been signed between government and South African Airways (SAA) new equity partner, Takatso Consortium, the consortium will do a due diligence check of the business.

He says a sale and purchase agreement will be signed before the official launch of the new SAA.

Takatso will own 51% of the restructured airline, while government will hold a 49% stake.

Takatso will invest just over R3 billion into SAA.

Gordhan says government will have a 33% representation in the airline’s management, while the operational capability will come from SAA staff and the Takatso Consortium.

“On the board of SAA, board seats will be allocated on the proportions of ownership and the variation on that depend on the due diligence exercises. Similarly as far as management is concerned, the composition will take into account South Africa’s national demographic and transformation agenda. Government will have the golden share of 33%,” explains Gordhan.

Below is the live stream of that announcement: