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Allan Reddy, who wanted to buy 1time, said he would continue in his quest to become the first black owner of a private airline.
Black businessman Allan Reddy wanted to buy low-cost airline, 1time, but the sale fell through at the last minutes.
The Sunday Times reported that 1time argued that it had an “irrevocable†pre-listing agreement with the JSE and therefore could not sell the airline but the stock exchange denies these claims.
According to the Sunday newspaper, Reddy is the CEO of Satlog Group - an empowerment company, looking to get its hands on an airline company.
Reddy told the paper that the price he offered to pay for 1time was just right but that the listing came in the way.
“We worked around the clock to make it work. We looked at alternatives to get out of the listing. As a last ditch attempt, we asked the JSE to delay the listing, but it wouldn’t be”, he reportedly said.
JSE director of listings, John Burke said it was nonsense that the listing got in the way of the sale.
“Formal approval for the listing hasn’t been given. It’s in the process, but it doesn’t mean the listing is going ahead,” he said, adding that the pre-listing document was not irrevocable and that 1time could do what it wants.
Rodney James head of marketing at 1time confirmed that Reddy’s company had made an offer to buy the business but said that the airline never really had intentions to sell full control of the company.
1time Holdings, which is the holding company of 1time Airline, 1time Charters and Aeronexux Technical, is scheduled to list on the alternative exchange on August 14.
The company plans to raise R30m with its listing which will be used to buy more aircraft and expand its aircraft charter and aircraft maintenance businesses.
Reddy told the Sunday Times that he would continue in his quest to become the first black owner of a private airline.
“I’m looking at some options; otherwise I’ll try to set up an airline from scratch,” he said adding that he believed that there was room for a fourth airline operator in the country.
Article from http://www.moneyweb.co.za/
South Africa’s own Branson? Good luck Mr. Reddy, and remember to get your reservation number for your car from www.southafrica-carhire.com
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