“In addition to the rocketing cost of fuel, nationally determined wages increased by 9%. These two cost items make up approximately 74% of Golden Arrow’s total costs. A fares adjustment is therefore unavoidable,” said Meyer.
Hosken informed shareholders on Wednesday that it was negotiating to buy out fellow shareholders Sibanye Bus Services and Table Bay Rapid Transport.
Golden Arrow owns one third of Sibanye’s issued shares and 50.06% of TBRT, which operates some trunk routes on the City of Cape Town’s MyCiTi bus rapid transit service.
“While negotiations are still at an early stage and the acquisition of some or all of these shareholdings may not proceed, the company nevertheless considers it prudent to inform shareholders of the potential transaction,” said Hosken.