South African aviation group 1time would raise R65,1-million to expand its airline and related businesses by selling a 25% interest in the group to a black economic-empowerment (BEE) consortium.Mtha Aviation.
The group entered into a subscription agreement with Mtha Aviation and the SKMT Sunrise Investment Group to become its strategic BEE partners.The parties have formed an investment holding company, Oakleaf Investment Holdings, to acquire and hold the 25% stake in the 1time group. Mtha would own 83% of Oakleaf and Sunrise the balance.
Oakleaf would subscribe for 70-million shares in the aviation group.1time has negotiated with a third-party to fund the BEE deal.To that end, 1 000 preference shares in Oakleaf would be issued to the third-party funder for a total of R63,15-million, representing 97% of the required funding.The remaining R1,95-million would be paid in cash by Mtha and Sunrise.
1time adds it will use the money to expand its airline, aircraft maintenance and charter businesses “and to increase the group's BEE shareholding to realise its vision and strategy to create the largest
low cost airline in South Africa. The specific issue provides 1time with the opportunity to meet both of these objectives.”
“The improved BEE shareholding will significantly strengthen the group's BEE credentials, re-enforcing the group's commitment to a multi-faceted approach to BEE, which aims to increase the number of previously disadvantaged individuals who manage, own and control the company.”said a 1time executive
Mtha Aviation has revenues of about R100 million a year and is involved in training of aviation personnel and aircraft maintenance. Mtha MD Busi Maqungo said the company had been approached to acquire a stake in 1time. "It was clear from the beginning that any new investor needed to bring capital to the table in order to fund 1time’s expansion. Not only were we able to do that, we were a good fit for 1time in that we are also involved in the aviation sector."
On inception of the company Mogwele Investments owned 5% of 1time Airline. They have now evolved as a 3% shareholding partner in the entire 1time Holdings group. Mogwele Investments is a black empowerment company, represented by Sipho Twala who serves on the airline's board assuming the position of chairman of the Group.
1time Chief Executive Officer, Glenn Orsmond, said: "1time is the first privately owned airline to commit itself to the objectives and targets set out in the Aviation Transport Charter. These objectives include a targeted 25% black empowerment shareholding. The airline is furthermore committed to consistently offering the lowest airfares to the general public to make air travel accessible to those previously denied the opportunity to travel by air."
More Info:Formally established in 2007 by professionals in the aviation industry with collective experience of more than 40 years.The company was built in response to the need for organizational reconfiguration and change management challenges in the aerospace sector in South Africa.Its vision and mission is to be world class aviation consulting firm in the African continent.
Managing Director:Busi Maqungo
Email:info@mtha-aviation.co.za
Website:http://www.mtha-aviation.co.za
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