WE’LL SELL MANGO FOR YOU, OFFERS COMMERCE24 FOUNDER

PRESS RELEASE

Business trading platform Commerce24.co.za says that it is willing to assist business rescue practitioner Sipho Sono of Opis Advisory to market and dispose of state-owned airline Mango.

Commerce24 estimates that Mango may be worth around R 300 million in total at the top end. The company has written to the business rescue practitioner, offering its assistance.

The site provides business owners and bulk trading partners with a verified staging window to put anything of commercial value up for sale.

“While the aviation market is not particularly stable presently, it is expected to recover over time. But Mango’s value lies in the route rights it holds,” Commerce24 chief executive Denny Mo points out.

The airline is believed to hold rights to Mauritius amongst other African regional network points and is presently the only South African airline that can fly between Johannesburg and wildly popular beach holiday destination Zanzibar.

There are likely no other assets of value beyond its potential future revenue and goodwill. “We have not seen its balance sheet but based on public reportage a ‘clean’ Mango that emerges from business rescue with creditors settled can be a solid business proposition for investors. The airline’s fleet is leased,” he says.

Mo believes that finding a buyer for Mango should not be a challenge and that a strategic equity partner or an outright buyer can be found. “At an estimated value of R 300m, an investment of R 150m or more plus a measure of working capital would be required to buy the majority of the business.”  

He suggests that, while the industry is crowded and the airline’s reputation is muddied after a disastrous 18-months of stop-starting, it’s got a solid brand and plenty of potential. “Mango was launched in 2006 and it grew on a sustained basis over time. I believe that a restart with the right investor is possible and may be profitable and we will broker the right buyer to the willing seller.”

Commerce24.co.za is a site that enables business trading and leverages its vast business network to facilitate transactions. On sale items include big ticket items such as guest houses, hotels and other hospitality assets along with bulk stock items and “practically anything of value, which can be traded.

“The Mango transaction is likely to be our largest yet. But with some offers already circling the R 50m mark, the business is no stranger to high value, long term investment opportunities,” MO says.

Commerce24 is an open source and free to use platform that harnesses the power of sharing like social media has done. With a free to use and free to share function, we can reach further and deeper into potential buyers nationwide. It lets the community find you the best buyer and the highest offer.