Futuregrowth asset management has warned that the Airports Company SA (Acsa) could be headed for a long legal clash with its minority shareholders after the government reneged on its promise to privatise and list the airports operator.

A Business Day report says Futuregrowth suggested that a long-standing legal dispute between minority shareholders and Acsa could drag on with no resolution in sight.

Futuregrowth provided empowerment funding to a consortium of minority BEE investors more than two decades ago to acquire a 4.2% stake in Acsa.

The minority shareholders at Acsa say they were lured to invest in the company on the understanding that it would be easy for them to exit because the airports operator’s shares would be listed on the JSE.

But there was never any listing, meaning that minorities were locked into an investment for years.

The government still has about 75% shareholding in Acsa.

Futuregrowth’s Sarah de Villiers has accused the Acsa board and the government of consistently disregarding minority shareholder interests largely by not privatising and listing.

The minorities subsequently filed a legal action for ‘oppression of minorities’, pushing to divest and for their shares to be repurchased at a fair value.

That matter has yet to be finalised.

Full Business Day report