• Harith General Partners signed a sale and purchase agreement to acquire low-cost airline FlySafair.

• The transaction will represent about 15% of Harith’s overall portfolio and will be financed through equity and debt.

• The deal aims to address South African ownership compliance requirements and remains subject to regulatory approvals.

“Harith and its subsidiaries have concluded a sale and purchase agreement to acquire FlySafair, one of the most successful and fastest-growing airlines in South Africa,” the firm said in a statement on February 10. The company added that “the proposed investment reflects its confidence in FlySafair’s proven operating model, its strong management team and its long-term growth prospects.”

The statement did not disclose the financial terms of the transaction. However, Tshepo Mahloele, Chairman of Harith General Partners, said in comments reported by Bloomberg that the deal “will represent about 15% of the overall portfolio” of the firm and that it “will be funded through a combination of equity and debt.” Mahloele also indicated that Harith intends to support the airline’s regional expansion. “South Africa is FlySafair’s stronghold and plays an important role in its strategy. We believe its model can also compete at a regional level.”

The transaction forms part of an exit process for FlySafair’s existing shareholders from a capital round that has been under consideration for several years. The deal also responds to regulatory pressure to comply with South African ownership rules.

In 2024, the Domestic Air Services Council ruled that the airline breached regulations because trusts and companies held 75% of the voting rights. The ruling followed a complaint filed by local competitor Lift Airline. ASL Aviation Holdings, an Ireland-based company owned by London private equity firm Star Capital Partners, partly controls Safair Operations, the parent company of FlySafair.

Founded in 2014 in South Africa’s highly competitive aviation market, FlySafair reached profitability within two years. The airline currently operates 10 domestic routes and five regional routes.

The transaction will allow Harith General Partners to expand its transport portfolio across Africa. Harith manages $3 billion in assets and focuses on infrastructure investments across the continent. The firm holds stakes in 14 companies operating in energy, transport, digital infrastructure, healthcare and water sectors across nine African countries, including Kenya, Ghana, Nigeria and Mauritius.

This article was initially published in French by Walid Kéfi

Adapted in English by Ange J.A de BERRY QUENUM