- April 20, 2004
- Posted by: admin
- Category: Transport
The sale of Cape Town`s municipal bus service Golden Arrow to two black-empowerment companies has been delayed due to complications in the process of due diligence, but is not in jeopardy. In addition, earlier threats by trade union federation Cosatu to scupper the deal through a court action have been silenced after the union`s Western Cape regional secretary, Tony Ehrenreich, said a statement will be issued tomorrow about `co-operation` with the new owners. Golden Arrow executive director Barry Gie announced last month that an offer from Hosken Consolidated Investments and Mettle Limited for R270 million was accepted, pending the due diligence process. Golden Arrow spokesman Vuyisile Mdoda said: `The (due diligence) process has proven to be very complicated. The new owners have to establish that all the assets of Golden Arrow are in place, for instance that we have 840 buses. But the deal is not in jeopardy. When the deal was announced, Ehrenreich said: `The sale disregarded all good governing principles and we will not allow it to go through. He did not want to comment on the contents of tomorrow`s statement, but said it involved the SA Clothing and Textile Workers` Union and the SA Transport and Allied Workers` Union finding a way to co-operate with Golden Arrow in future. The unions intended to put forward an offer to match the one accepted by Golden Arrow`s board.
Source: Gustav Thiel – Cape Times