FlySafair answers questions about Harith takeover

The recently announced, likely sale of FlySafair to Public Investment Corporation-backed investment group Harith and its affiliates was announced earlier this week. An internal note to staff from chief executive Elmar Conradie revealed who the affiliate is. The consortium partner is private investment firm Zungu, headed by veteran business leader Sandile Zungu.

In his note Conradie explained to his colleagues that “the Harith consortium includes two funds that Harith manages which give their investor clients exposure to FlySafair. A third is another local investment firm called Zungu which often invests alongside companies like Harith to get exposure to the investments they lead”. Conradie also further shared why the deal was happening.

“The current shareholders have been looking to sell FlySafair for some time. Harith believes in FlySafair as a strong South African business and wants to support its future growth. FlySafair spokesperson Kirby Gordon responded to questions fromThe Citizen.

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The acquiring entity is a newly established special purpose vehicle named Harith Aviation Proprietary Limited (“Harith”). Ourpress releasereferences “Harith and affiliates”. The consortium includes infrastructure funds managed by Harith General Partners and Zungu is one of the strategic co-investors within that consortium.

This consortium is mandated by a long-term, principal-led commitment to South Africa’s infrastructure and aviation stability. Harith General Partners acts as the asset manager facilitating the deal and the consortium. What I can confirm is that the Public Investment Corporation (PIC) is not one of those co-investors.

At this stage, and in accordance with standard practice in transactions that are subject to regulatory approval, the detailed breakdown of the individual investors and their respective shareholdings is being formally submitted to the relevant regulators, who are entitled to first line of sight of that structure. It is normal for that level of detail to not be made public until the regulatory processes have progressed. Post-completion, Harith Aviation will be the shareholder of FlySafair and will exercise its rights in that capacity. The board of FlySafair will be constituted in accordance with the company’s Memorandum of Incorporation and the applicable regulatory requirements.

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