Worldwide African Investment Holdings has withdrawn its Free-to-Air shareholding to pursue satellite interests, writes Niel Bierbaum
WISEMAN NKUHLU’S Worldwide African Investment Holdings has given notice that it intends to withdraw as a shareholder from Quentin Green’s Free-to-Air consortium.
According to spokesman Joe Makobe, WWAIH intends to pursue direct-to-home satellite opportunities “rather than waiting for terrestrial licences”.
Free-to-Air intends to apply for a commercial television licence. However, given the two-year moratorium on terrestrial TV licences proposed by the Independent Broadcasting Authority, WWAIH feels that “direct-to-home TV will be miles ahead by the time the terrestrial licence goes on air and this will impinge on the ability of a terrestrial licence to compete”.
Makobe confirmed this week that WWAIH had served notice of its intention to withdraw from Green’s consortium “two weeks ago”. In spite of this, Green did not notify the parliamentary select committee on communications when he appeared before the committee on November 7. A document distributed on that date listed WWAIH as a shareholder. According to Green, this document had been submitted to the committee “three weeks earlier”.
The withdrawal of WWAIH provides a double whammy for Green. Firstly, he will have to find a replacement for this all-important black shareholding. WWAIH is owned by six black South African shareholders, namely Wiseman Nkuhlu, Kaya Ngqula, Thuthuma Nhleko, Max Mayisela, Maud Motanyane and Lot Ndlovu. WWAIH’s other significant investment to date is in Africoil, which is a deal with Caltex in which WWAIH will take over 100 service stations in Gauteng and eventually beyond. According to Green a replacement will be announced “within the next ten days”.
Equally important is that the move is an expression of confidence in the potential of satellite TV over terrestrial. This goes against Green’s insistent arguments to date that satellite will not achieve significant penetration into the mass market. However, Green still insists that satellite will only be available to an elite audience.
Green’s other members include the National Sports Council, Primedia Broadcasting, Nedbank Investments, Kaizer Motaung, Opus Investments Limited, Reunert Consumer and Commercial Holdings, and former Datakor shareholder Nic Frangos. If any of these investors follow WWAIH’s lead, his company’s name could take on a whole new meaning.
Other potential applicants for a terrestrial television licences
* Southern Media Limited, a consortium which includes Kagiso Trust and Channel Four from England as well as “private British investors”, according to director Sandy Balfour.
* Despite speculation, M&G Media, the holding company of Mail & Guardian, is not a member of this consortium, although discussions between the two have taken place. Channel Four is a “publisher channel” which acts as a distributor for high quality public service programming that is made by independent producers. Southern Media hopes to create the same type of channel here. This would create an opportunity for South Africa to export programming, says Balfour.
* A joint venture in which Moribo Investments and Interleisure are two partners. Moribo is a wholly owned subsidiary of Thebe Investments, although chairman Moss Mashishi indicates that it is an independent company with its own board and strategy.
Moribo is an equal partner with Interleisure in Ster-Moribo and also holds 60 percent of cinema franchise Maxi Movies. Interleisure bid unsuccessfully in the late Seventies for the pay TV licence which was granted to M-Net. There have been no details on the planned format, nor any official announcement regarding an international partner. However this consortium has spoken to everybody from Sony Columbia to Turner, Warner and HBO as well as to PBL and RG Capital in Australia and a number of UK players. Sources indicate that this consortium most recently held talks with Kerry Packer.
* MTV South Africa. The partners include Primedia Broadcasting (50 percent), MTV Networks (20 percent), Johnny Clegg (25 percent) and a music education trust (5 percent).
The IBA has made clear its intention to license a full spectrum channel, but Primedia CEO William Kirsh insists that MTV is not a music channel but a “youth lifestyle channel that communicates in the language of music”. He says that the announcement of this venture was not simply an attempt to raise funds on the stock exchange. “Our earnings are supportive of the share price,” he says.