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- Minister of Public Enterprises Pravin Gordhan has been given 30 days to say yes or no to the sale of Mango.
- The state-owned low-cost airline hasn't flown since July 2021.
- Its business rescue practitioners have found a buyer, but the sale needs to be approved by Gordhan.
- For more financial news, go to the News24 Business front page.
The North Gauteng High Court in Pretoria has given Minister of Public Enterprises Pravin Gordhan 30 days to decide whether low-cost carrier Mango can be sold to an undisclosed bidder.
If Gordhan does not decide within 30 days, Mango's business rescue partitioner (BRP) can assume that they can go ahead with the sale, the court ruled this week.
Mango, a wholly owned subsidiary of South African Airways, hasn't flown since July 2021.
Gordhan was first asked to approve its sale in September last year but had yet to make a decision by the time the case was argued in May.
The minister said he needed more information on the company planning to buy out Mango, including its business plan and foreign ownership.
But Mango's business rescue practitioner, Sipho Sono, refused, arguing that if the sale went ahead, SAA and Mango would be rivals.
Gordhan was, however, given the executive summary of the business plan.
READ | Mango's potential investor still waiting in the wings amid court case against Gordhan
In February, Sono approached the high court to compel Gordhan to make a decision. Sono was later joined by the National Union of Metalworkers of South Africa, which wants the sale to go ahead.
The court ruled this week that the minister's inaction since he was asked to approve the sale constituted "unreasonable delay". It said:
Gordhan's failure to make a decision was "unlawful and constitutionally invalid".
The name of the company seeking to buy out the airline from its parent, SAA, is still a closely guarded secret.
The ruling provided few hints – with BRPs only telling the court that the owners of the "investment company" were South Africans.
The investor has agreed to acquire Mango's shareholding from SAA and settle all debts and payments to creditors.
