WEDNESDAY, 11.00AM
MEDIA and communications group Primedia has snapped up most of the operation of Interleisure in a R1,5-billion deal.
Primedia CEO William Kirsh said his group bought 80% of Ster-Kinekor Theatres, Ster-Moribo, Ster-Kinekor Pictures and Cinemark, as well as 85,4% of Ster-Kinekor Home Entertainment and 30% of Ster-Kinekor Jersey, giving Primedia instant dominance of SA’s film distribution and marketing industry.
Interleisure operations not included in the deal are Computicket, which was sold to Primedia subsidiary Multichoice for R35-million, and Interleisure’s 20% stake in Primedia’s arch-rival Sasani.
The long-awaited deal comes ahead of the proposed unbundling and voluntary liquidation of Interleisure. Interleisure is 75%-owned by Kersaf and Servgro, which is unbundling its R3,7-billion food, leisure, transport and media empire. Interleisure said on Tuesday that unbundling will deliver more value to shareholders than merely replacing Servgro’s 40% stake with another controlling shareholder.
Primedia will offer up to 15% of the equity in Ster-Kinekor’s businesses to a black empowerment consortium led by Siphumelele Investments, Primedia’s partner in Cape Talk radion, but negotiations have not been finalised. Kirsh said the purchase price will be met with R204-million in cash and R1,3-billion in new Primedia stock at R25,50 a share.