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SAA might undertake Telkom mannequin of governance: report

Public Enterprises minister Pravin Gordhan says that the federal government would think about a shareholder construction much like Telkom, for South African Airways.

Telkom runs independently from the federal government, regardless of it having a 37% stake within the listed entity, whereas state-owned Public Funding Corp holds roughly 15%. The remainder is owned by institutional buyers and the general public.

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“Telkom is an attention-grabbing mannequin that we might truly have a look at as we go ahead,” Gordhan reportedly stated to eNCA.

The Nationwide Treasury final week dedicated to assist and supply funding for the airline’s new enterprise rescue plan.

It’s projected that R10.1 billion shall be required to fund the plan. This cash shall be used to:

  • Clear up and set up the steadiness sheet;
  • Restructure the remainder of the group entities that aren’t in enterprise rescue;
  • Present working capital for the remainder of the group’s entities;
  • Create a steady and viable platform for a brand new restructured nationwide airline.
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The restructuring may also embrace severance packages to about 2,700 SAA workers who shall be retrenched, the Division of Public Enterprises stated.

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