South Africa’s government has retained special voting rights in the country’s national carrier even after selling a majority stake and will be given 3 billion rand ($186 million) in preference shares that can be redeemed through future cashflow.

That means the state stands to benefit should new owner, the Takatso Consortium, revive a carrier that’s struggled under years of heavy losses, corruption and mismanagement, according to a statement from the Department of Public Enterprises on Thursday.

Takatso—made up of a local jet-leasing company and private-equity firm—will provide 3 billion rand in working capital and has valued SAA’s assets at about the same amount, the department said. The group agreed to take control of the airline almost a year ago for a notional sum of about $3, in return for spending commitments and responsibility for operations.

“The 51 rand was a nominal sum set some time ago when SAA was not at all a going concern,” Public Enterprises Minister Pravin Gordhan said by phone. “While now it is still in the recovery phase, things are far better for government than it was when that price was set.”

Source: https://katakenya.org/2022/05/13/south-africa-sets-plans-to-cash-in-on-revived-national-carrier/