Senegal plans to sell an estimated 30 percent stake in its national airline to boost its holding and avoid bankruptcy, the Finance Minister said, adding that they had received interest from both regional and international aviation player.
Among the investors interested in a stake in Senegal Airlines are Europe’s biggest carrier and a shareholder in Kenya Airways – Air France-KLM Group, the Ethiopian Airlines and South African Airways, Ventures Africa quoted the west African nation’s finance minister, Amadou Ba saying.
Ventures Africa said SAA Spokesman, Tlali Tlali, had confirmed being invited by the Senegalese government.
“We have been approached by the Senegalese authorities and an offer has been presented to us for our consideration,” Tlali said, but declined to comment on the airline’s position on the offer, saying that this offer was under consideration.
While noting that the Senegalese government is seeking partners to boost its holding to avoid bankruptcy, Ba stated that the state-owned airline is open for negotiations with technical partners and that it has received a few offers.
The Senegal Airlines which began operations in 2011 after the collapse of Air Senegal International is jointly owned by the Senegalese government and private investors, who have about 64 percent stake in the business.
SAA has been planning on developing a regional airport in West Africa, which will serve as a secondary business hub and countries under consideration include Nigeria, Ghana, Senegal, Gabon and Togo.
The airline is “looking at a few countries in West Africa. There is no decision by the board; we are looking at which country best meets SAA’s requirements.” SAA CEO Monwabisi Kalawe said during the announcement of the airline’s annual results last week.
The airline’s annual results showed that it suffered a $88 million loss in the year through March.
South African Airways follows in the footsteps of its rival – Ethiopian Airlines, which added a regional hub in Togo, West Africa and in Malawi – representing the South hub – last week.
