Julius Baumann
13 January 2009
Johannesburg — JSE-listed aviation group 1Time's recently announced agreement with Solenta Aviation and its sister company, ACIA Aero Holdings, is likely to provide the group with an ideal platform to expand on the continent.
Shortly before Christmas, 1Time Holding announced it had signed heads of agreement with Solenta and ACIA in respect of a funding arrangement and the granting of an option to subscribe for shares in 1Time. The group said the transaction would provide funding for acquisitions and growth opportunities.
In September 1Time acquired a 77,5% stake in Safair Technical from Irish-based Aergo Capital for $7,15m, which would be merged with 1Time's wholly owned maintenance division, Aeronexus, to create one of the largest maintenance companies in Africa. 1Time is likely to use some of that new capital to fund that transaction.
Apart from Aeronexus and low-cost airline 1Time, the group also has a charter division and therefore Solenta's charter and maintenance business will fit neatly with those of 1Time as it seeks to expand in Africa.
Solenta is widely represented across Africa and has a presence in Kenya, Togo, Côte d'Ivoire, Zimbabwe, Senegal, Gabon and Sierra Leone. It also has an office in Afghanistan. It has lucrative contracts with various aid groups as well as DHL, the global freight group. Solenta also has maintenance facilities in several countries which would help 1Time with its aim of taking on more repair and maintenance work in Africa.
"The intention is to grow the merged entity to be the largest in Africa. The additional capacity will allow us to take on more third-party work from airlines in Africa.
"We really believe that we can make a dent in the world market," 1Time Holdings CEO Glenn Orsmond said .
JSE rules prevent 1Time from commenting on their most recent transaction until the full details have been made public .
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