WEDNESDAY, 5.30PM
NEW Africa Investments Limited is set to purchase the Independent group’s 42,5% stake in the Sowetan, South Africa’s largest circulation daily newspaper.
The price of the deal values the Sowetan at R150-million.
The Sowetan was unbundled by Argus (now Independent) Newspapers in 1994 with Nail, chaired by Dr Ntatho Motlana, taking a controlling interest in the new company, New Africa Publications. Staff currently own five percent of the shares and Nail 52,5%.
Independent chief executive Ivan Fallon said Sowetan had been valued on a variety of models. “Each of them produced a price of R150-million upwards. We were not sellers at below that price, and would still be willing buyers if Dr Motlana changes his mind. There is nothing like the Sowetan in the market, and its potential is huge. It is a terrific paper.”
Sowetan is one of SA’s few daily titles which increased its circulation over the past year, according to the latest All Media Products Survey.