Business trading platform Commerce24.co.za says it is willing to assist business rescue practitioner Sipho Sono of Opis Advisory to market and dispose of state-owned airline Mango. The site provides business owners and bulk trading partners with a verified staging window to put anything of commercial value up for sale. Commerce24 estimates Mango may be worth around R300 million at the top end.
The company has written to the business rescue practitioner, offering its assistance.
“While the aviation market is not stable,” says Commerce24 chief executive Denny Mo, “it is expected to recover over time. Mango’s value lies in the route rights it holds.” The airline holds rights to Mauritius and is the only South African airline that can fly between Johannesburg and Zanzibar.
There are no other assets of value beyond its potential future revenue and goodwill. “We have not seen its balance sheet but based on public reportage a ‘clean’ Mango that emerges from business rescue, with creditors settled, can be a solid business proposition for investors. The airline’s fleet is leased.
Mo believes a strategic equity partner or outright buyer can be found. “An investment of R150m or more plus a measure of working capital would be required to buy the majority of the business.”
Mo suggests despite the airline’s disastrous 18-months of stop-starting, it has potential. “Mango was launched in 2006 and it grew on a sustained basis. I believe a restart with the right investor may be profitable. And we will broker the right buyer to the willing seller.”
Commerce24.co.za enables business trading and leverages its business network to facilitate transactions. On sale items include guest houses, hotels, and other hospitality assets along with bulk stock items.
Commerce24 is an open-source, free-to-use platform that harnesses the power of sharing. It lets the community find you the best buyer and the highest offer.