Mungo Soggot
THE series of transactions that have massively boosted black ownership of pay TV channel M-Net will inevitably prompt more black representation on its board, says chief executive Gerrie de Villiers.
M-Net will soon represent one of the largest black empowerment transactions to date. The revolution in the company, which started life as a white commercial channel, will be effected by the acquisition of controlling stakes in two key shareholders – Johnnic and Perskor by the National Empowerment Consortium (NEC) and Kagiso Trust Investments respectively.
The Johnnic deal will give the NEC control of Omni Media, which owns 24% of M-Net, with the Perskor/Kagiso holding amounting to 8%. Another 10% of M-Net already lies in black hands following the Phutuma share offer. This leaves the total effective black shareholding at 42%. Nasionale Pers has 19%.
According to the Independent Broadcasting Authority’s rules, 15% is deemed to amount to control.
De Villiers says there will obviously be an increase in black board members, which already has two members and one alternate director from “previously disadvantaged groups”. On programming, he says he expects the new board members will take decisions that “are right from the business point of view”.