SA Express seeks a buyer or partners
● A challenging chapter is unfolding in SA’s aviation industry as the joint provisional liquidators of SA Express prepare to issue an expression of interest notice to test the markets’ appetite for equity partners, or a buyer of the airline or part or all of its assets.
SA Express has floundered in recent years with allegations of mismanagement and corruption.
It seems the Covid-19 pandemic may be the final straw to break the back of the stateowned airline.
GoIndustry DoveBid, a global asset disposal consultancy firm, has been mandated by the provisional liquidators to lead and manage the expression of interest sales process.
The consultancy has experience in the aviation sector.
The value in the operation includes eight Bombardier CRJ200 jet aircraft, engines, parts and infrastructure.
“In terms of the provisional liquidation order we have a short period to gauge the interest of the marketplace and check validity of expressed interest submission,” said John Taylor, an associate di- rector of the consultancy, who is leading this process.
“This will then be presented to the provisional liquidators, who will review and seek to determine the best way forward and the best outcome for SA Express employees, creditors and shareholders.
“There are some provisos. Would-be investors or buyers must be able to operate in the SA environment, and must be able to be financially sustainable and outline their employment strategy and transformation within the aviation industry.
“As a result, we are working to manage the process in the most transparent way and in an accelerated process as to ensure that all technical and operational licences can be preserved.”
Taylor said that the opportunity was there for an entrepreneurial consortium to gain access to the domestic and regional airline market. This process could normally be notoriously difficult and therefore the real treasure in these circumstances may well be licences and statutory requirements that are already in place.
The assets of the company include:
● Eight Bombardier CRJ200 jets;
● Engines and spare parts;
● Specialised tooling, workshop and support equipment;
● Licences (operating, approved maintenance organisation, air traffic & navigation systems); and
● Information technology infrastructure and all other intangible assets required to operate an airline in SA.
The final submission for expressions of interest is July 21. Submissions should be e-mailed to Taylor at john.taylor@liquidityservices.com. Telephone 021702-3206 or cellphone 082416-3883, or go to website www.go-dove.co.za. GoIndustry DoveBid is a Liquidity Services subsidiary. It operates a network of e-commerce marketplaces that enable buyers and sellers to transact in an automated environment offering about 500 product categories.
The company employs e-commerce marketplace solutions to manage, value and sell inventory and equipment for business and government sellers.
It says its service allows it to deliver results that have enabled it to forge long-term relationships with about 14,000 sellers worldwide.
With about $8bn (R135bn) in completed transactions, and about 3.6-million buyers in almost 200 countries and territories, the company says it is a “proven leader in delivering smart commerce solutions”.
The company’s website is at LiquidityServices.com.