Ethiopian Airlines has been named the preferred bidder to be the strategic partner of Air Malawi (2012) Limited based on its global experience and competitiveness, the Public Private Partnership Commission (PPPC) announced on Thursday.
The airline beat Fly Africa of South Africa and Botswana’s Global Business Network.
PPPC chief executive officer Jimmy Lipunga told journalists in Blantyre that the viability of the restructured Air Malawi will be greatly enhanced through strategic partnership with a global player.
“Air Malawi (2012) Limited will gain more traffic through international route linkages,” said Lipunga, flanked by the airline’s liquidator Lekani Katandula and a legal adviser to the liquidator Gauton Kainja.
He said PPPC met on Wednesday to consider recommendation of the evaluation committee, and upon being satisfied that Ethiopian Airline bid was most “responsive to the declared objective of recapitalisation scheme.”
Lipunga said in line with regulations, the airline will be invited for negotiations as a prelude to the conclusion of a shareholder and investment agreement.
This means Ethiopian Airlines will take up 49 percent equity and the PPPC chief said the airline has indicated that it wants the Malawi Government to hold 20 percent shareholding.
The remaining stake will be taken up by Malawian investors.
The strategic equity partner (SEP) is expected to recapitalise the new investment vehicle based on a new and viable business operational model and the level of participation.