By Radarr Africa Business Desk
LAGOS, October 31 (Radarr Africa) – South Africa’s Competition Tribunal has cleared, with conditions, the acquisition of budget carrier FlySafair by Harith General Partners in a deal valued at about R7 billion ($420 million), Harith and FlySafair announced on Thursday, October 29.
The buyer is Harith Aviation, a subsidiary of the Johannesburg investment firm co-founded and chaired by Tshepo Mahloele. The seller is Ireland’s ASL Aviation Holdings. The parties signed the agreement in February, and closing is expected before the end of the year, subject to remaining approvals and conditions, Billionaires.Africa reported.
Harith’s chief executive, Sipho Makhubela, said the deal shows “long-term South African capital backing a successful South African business.” FlySafair chief executive Elmar Conradie said the airline looks forward to “embarking on a new chapter for FlySafair” as the remaining conditions are met.
FlySafair will keep its current management and operate independently. Harith said the acquisition will make up about 15% of its portfolio and will be funded with a mix of debt and equity.
The tribunal’s conditions relate to Harith’s stake of about 37% in Lanseria International Airport, north of Johannesburg, which the report described as South Africa’s only privately owned international airport. The Competition Commission recommended approval in July, on terms that required the companies to limit the exchange of sensitive information and to offer airport services at Lanseria to other airlines on fair, reasonable and non-discriminatory terms. The tribunal has not yet published its full conditions.
The sale is also meant to settle an ownership dispute. South African law requires local airlines to be at least 75% owned and controlled by South Africans. In 2024, following a complaint from rival Lift, the Domestic Air Services Council ruled that FlySafair was in breach, finding that trusts and companies, rather than individuals, held 75% of voting rights and that ASL effectively controlled almost 75% of the airline. FlySafair challenged the ruling in court, and a sale to a South African group is intended to resolve the matter.
FlySafair began flying in 2014 with two aircraft. It now operates more than 40 Boeing 737 aircraft on 26 routes, with about 164 daily flights, and holds more than 60% of South Africa’s domestic seat capacity, the report said. Billionaires.Africa linked that growth to the collapse of Comair, which operated British Airways and kulula.com flights, and the shrinking of South African Airways.
Mahloele co-founded Harith in 2006. The firm led the Takatso consortium, which agreed in 2021 to buy 51% of South African Airways, a deal that collapsed in 2023. Harith also made unsuccessful bids for Comair and South African Express.
Harith manages about $3 billion in African infrastructure assets, including rail, airports, logistics and border posts. Its shareholders include the Public Investment Corporation, which manages pensions for South African public servants.
The report relied on statements from Harith and FlySafair and on information about the Competition Tribunal, the Competition Commission and the Domestic Air Services Council.
