Africa-Press – Mauritius. Already clouds on the horizon for the airline company that is now part of a behemoth called Airport Holdings Ltd? After the withdrawal of Air India and Rogers from its shareholding, the new mega-company wants to buy back the shares held by Air France.
Good or bad idea, the future will tell . . . On October 7, the online newspaper uniindia. com reports that the Air India board of directors gave the green light to sell its shares in Air Mauritius (MK).
This is when the Indian airline was taken over by the Tata group after a call for tenders. Rogers, the other major shareholder, has decided to follow in Air India’s footsteps.
The new Airport Holdings Ltd (AHL) megastructure, which brings together 14 entities, has also turned to Air France for the repurchase of its shares. A response from the French airline is awaited. With this approach of AHL, what consequence for MK?
Raj Ramlagun, former executive and shareholder at MK, explains that since the airline will be completely nationalized, he wonders if this does not reflect the current trend where there is a general fed up with the culture of governance? “Won’t the option to buy the shares by the state make the situation worse? At the state level, there are no people who know the difference between what is theirs and what is not.
” The shareholder is ironic, claiming that further statehood of MK would have benefits for employees, including job security.
“Employees in parastatal bodies or civil servants have not had their roadmap. They will be covered by the PRB.
But can we afford the same culture, good or bad? The state is taking all its debts. Do we have another option? What is the best option? This company should be recapitalized.
We are putting the cart before the horse. First, it was necessary to delist, then move on to purchasing the various shares and finally the option of creating Airport Holdings Ltd.
We cannot put people in front of accomplished facts. There is a breach of governance. ” Lost partners Fabrice David, a Labor MP who deals with the MK file at the party, believes that with the takeover, the airline will lose shareholders who were also aviation partners.
“Air France and Air India were founding shareholders of our national airline.
I think for Air India it was an expected change, as the airline was taken over by Tata. She may want to start on new, healthier foundations. She is heavily in debt.
” The MP pointed out that Air India has played an important role in the development of Air Mauritius for several decades.
“We are losing a major shareholder. Air France has not yet made its decision. France is one of our main tourist markets. Air France is a shareholder, also a strategic partner, very important for MK.
” Suddenly, the question is: “If Air France withdraws, will that not have an impact on the flow of tourists from France to Mauritius?
Another question is that with the shares bought back from “several historical shareholders” by the new Airport Holdings Ltd structure, what will be the consequences on the change of partnership on the MK listing on the stock market? “Won’t that destabilize the current market value?” Regarding small shareholders, Fabrice David wonders if the change of partnership will not impact the climate of trust between large and small shareholders.
“There are a lot of small shareholders and common ground has to be found.
” Either way, Airport Holdings Ltd seems to want to buy back as many shares as possible.
