AIRLINK has confirmed that the Sishen Iron Ore Community Development Trust (SIOC-cdt), through its investment are Sishen Iron Ore Company Community Development Trust Investment Holdings Limited, has acquired a 32,51% stake in Airlink, in what the airline calls a landmark BBBEE transaction in the aviation industry.
Commenting on the announcement, Airlink ceo, Rodger Foster, said the transaction had forged a relationship that would benefit all parties concerned. “We are excited about the opportunity to work with an empowerment partner with SIOC-cdt’s credentials and broad-based representation. We expect Airlink’s financial performance to make a meaningful contribution to the beneficiaries of SIOC-cdt.”
Rodger further added that the enhancement to Airlink’s empowerment credentials would provide the company with a number of key competitive advantages. “With the conclusion of this transaction, Airlink is firmly positioned at the forefront of transformation in the aviation industry. We are favourably positioned to lead the way in terms of this quantum shift in ownership. Airlink’s shareholding now exceeds the criteria committed to in the Air Transport Sector BBBEE charter and qualifies Airlink to secure additional intra-Africa regional routes as designated by the International Air Services Licensing Council.
“There are wonderful synergies between SIOC-cdt and Airlink, with SIOC-cdt having been spun from the mining sector with continued investment interests in the sector and, with Airlink offering scheduled air services to many mining industrial destinations throughout SADC, there is every prospect that new route opportunities will be identified and explored,” said Rodger.
Nedbank Capital and Arkein Capital acted as advisers to the transaction.
*SIOC-cdt, established in August 2006 during the unbundling of Kumba Resources into Kumba Iron Ore and Exxaro, is a broad-based black community trust created solely to benefit communities around the Sishen, Sishen South and Thabazimbi mines, which include more than 300 000 families.
