1time Holdings concludes BEE deal

JSE listed aviation group finds aviation-focused partners

                                      

Wednesday, 9 March 2011: Main board–listed 1time Holdings Limited has concluded its anticipated deal with a BEE consortium for a purchase consideration of 70 million ordinary shares at a 10% discount to the 30 day volume average weighted price. The transaction is effective 2 March 2011.

1time Group CEO Glenn Orsmond says that the equity capital of R49 million will be used to expand the airline as well as its airline maintenance and charter businesses.

“Our vision has always been to create a diverse aviation group consisting of the best low cost airline in southern Africa and a world class maintenance facility. This transaction has significantly strengthened our BEE credentials and shareholding and we believe that the move will assist us in realising our vision,” he said.

The BEE consortium was funded by the Industrial Development Corporation (IDC) and comprises Mtha Aviation (Pty) Ltd, Sunrise Investment Group (Pty) Ltd and Oakleaf Investment Holdings (Pty) Ltd, whose sole purpose will be to acquire and hold an equity stake in 1time.

Orsmond continues, “We are pleased that Sipho Twala, a founding shareholder and chairman of 1time, is also part of the BEE consortium. The funding will give impetus to our growth plans for the airline by introducing new routes into Africa and the Lanseria operations, as we as facilitate the planned growth of the aircraft maintenance business:”

Busiwe Magongo, MD of Mtha Aviation, has been appointed as executive director on the board of 1time Holdings. Blacky Komani, Chairman of Mtha Aviation, will serve as non-executive director in addition to his role as Executive Director: American Express Foreign Exchange and other directorships. He has 20 years experience in travel and tourism.

Says Komani, “There are already a number of synergies and we intend to leverage maximum value from the anticipated growth in passenger numbers in Africa, utilising the BEE consortium’s expertise to maintain and enhance 1time’s competitive edge. We anticipate growth in our market share through an improved range of offerings and have expansion plans in place.”