Business News: PIC Confirms That It Owns 30% Harith General Partners
- The Public Investment Corporation (PIC) while currently in charge of civil servant pensions declared that they own 30% of Harith General Partners
- Due to PIC, owning 30% of Harith an investment group that is a part of the consortium set to hold the majority share in South African Airways (SAA)
- Public Enterprises Minister Pravin Gordhan declared that the Takatso consortium would own a majority 51% stake in SAA, leaving 49% remaining for the state.
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The Public Investment Corporation (PIC) together with the management of civil servant pensions, has confirmed that it holds 30% of Harith General Partners. Harith is an infrastructure investment group that is a part of the consortium set to hold the majority stake in South African Airways (SAA).
The PIC, currently monitoring over R2 trillion mostly from the Government Employees' Pension Fund (GEPF), confirmed on Monday, 14 June, in a statement that it holds 30% of Harith General Partners. It also revealed that some of the people involved in Takatso Consortium may have previously had dealings with the PIC.
Public Enterprises Minister Pravin Gordhan stated on Friday that the Takatso consortium of Harith General Partners and Global Aviation would hold a majority 51% stake in SAA, while the state holds the remaining 49%.
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Building relationships
Fin24 reported that Harith's relationship with PIC has been focused on the examination of the Mpati Inquiry. It was also revealed that Harith allegedly charged higher fees that amounted to above 8% per year.
More SAA sales
Moneyweb reported that Alf Lees, DA MP, and member of the Standing Committee on Public Accounts (Scopa) gave a statement on Friday explaining that there was a surplus of concerns surrounding the deal.
His comments come after Gordhan informed the public that Takatso Consortium will be the new equity party for the embattled airline.
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A portion of SAA sold to a Black-owned association
Previously, Briefly News reported that Minister Pravin Gordhan announced that an agreement has been met by Cabinet permitting the ownership of SAA through a partnership between the government and a consortium equity partner.
A consortium made up of Global Aviation and Harith collectivity known as Takatso upon investing an initial R3 billion will hold 51% of the company and government 49%.
Gordhan confirmed that the board of the new SAA seats will be determined based on ownership and the outcomes of the due diligence process. With regards to the management of the airline, the government will hold a “non-dilutable golden share" of 33%.
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Source: Briefly News
