GOVERNMENT HAS appointed Deutsche Morgan Grenfell to act as its privatisation adviser in the sale of the Airports Company. The selection of a merchant banker is the first concrete step in the proposed R2,5bn sale.
In the bidding for the company are the British Airports Authority, Malaysian Airports Authority, and Frankfurt, Vienna and Schiphol airports.
Up for sale will be a 49% stake in the company. Government hopes to have concluded the deal by the end of next year. The remaining 51% will eventually be listed on the Johannesburg Stock Exchange, thereby further diluting government's share.
By taking its stake to the JSE a year or so after privatisation government hopes to have a much-improved company attractive to local and foreign investors.
At least 20% would be made available to a foreign strategic equity partner, who would be required to form a consortium with a local black partner.
Up to 10 companies are believed to be interested in the deal.
