A total of 17 prospective buyers have expressed interest in provisionally liquidated SA Express – of which nine are interested in buying SA Express as a complete business.
This is according to a leaked report dated July 27, compiled by Liquidity Services/ GoIndustry DoveBid, the asset disposal company appointed by Tshwane Trust – the provisional liquidators of SA Express.
The report says one party also proposes to buy part of the business; and seven are interested in buying part or all of the airline’s movable assets. All parties have until September 14 to submit their offers.
Due diligence process
According to the report, a due diligence process was opened on August 3 and expires on September 7. Offers will be based on an agreement prepared and/or supported by the provisional liquidators.
Offers will only be considered as such if they are signed and accompanied by a deposit payment of 25% of the purchase price as indicated in the agreement. These offers will be subject to a seven-day confirmation period.
Simultaneously with the due diligence period, the asset disposal company will advertise and market SA Express’ saleable assets for an auction due to close on September 30.
The report says the reasoning behind this is to try and secure income for creditors as soon as possible without delays that might be caused should the two procedures be run consecutively. Should the due diligence procedure be effective, the auction sale will be cancelled, the report says.
Interested parties are listed as follows:
- South African equity crowd-funding platform, Uprise Aviation, in a joint venture with trade unions NUMSA and SACCA, proposes to purchase SA Express as a going concern by investing R75m (€ 3.6m) in cash plus R175m (€8.4m) in working capital. Due diligence is to be done by Lufthansa Consulting.
- Gulf Development Council, a UAE/SA consortium, proposes to purchase SA Express for R10m (€482 545), with all creditors compromised. They propose to re-employ all employees in phases, starting with 250 by Nov 1.
- SETNA OI of Chicago, USA, is interested in purchasing all or part of the assets.
- SIMGROUP, a SA/Malawian group, proposes to purchase the entire business for US$5m/R8bn through NBS Bank in Malawi and wants to enter into a new airline agreement with the SA government.
- South African Kinfedi/Trident of Poseidon Consortium is interested in SA Express as an operating business but has not indicated an offer.
- A group called Autogas SA/Aviation Connection has indicated interest in the complete business with a consortium to be formed from the USA and UAE.
- South African Woodford Vehicle Rental is interested in the complete business, but no further details are given.
- BDS Airways, listed as a South African start-up, is interested in SA Express including all assets, facilities, brand and brand equity, including all office and field equipment.
- South African group, Tiger Africa, wants to purchase part or all of the assets.
- Lesotho’s Matekane Group is interested in two aircraft engines, spare parts, and tools.
- US-based Monocoque Diversified Interests proposes to pay US$551 000 for all aircraft and engines.
- Q400 Leasing (RMB) has expressed interest in acquiring tooling and parts related to SA Express’ De Havilland Canada Dash 8 aircraft.
- Fly Modern Ark Option, a South African company that specialises in aircraft leasing and sales, proposes to pay R10m (€482 545) for all aircraft and engines; or R10m (€482 545) for all current operating and AMO licenses; R100m(€4.8m) for all shares, all assets, and licenses, excluding all creditors liability and employees.
- Zimbabwean/SA consortium called Solair is interested in acquiring assets, shares, and claims through Chinese and Singaporean funding connections.
- Avmax of Canada has submitted two proposals to acquire assets and aircraft parts.
South African Imbani Holdings is proposing to pay R20m (€965 514) for the entire issued share capital of SAX including all valid licenses, routes, and selected assets.