Empowerment investment holding company New Africa Investments Limited (Nail)has formally called for expressions of interest from parties interested in acquiring some or all of its assets or who are interested in exploring merger alternatives.
Nail recently announced it was reviewing its strategy of building media assets because of frustration caused by a combination of regulatory constraints and a lack of appropriately priced assets.
“The company has made progress and its media assets are performing well,” Nail’s executive director Kenny Setzin said on Wednesday “but because of the environment in which we find ourselves Nail has to deal with a number of strategic issues including its strategic focus and future direction, the extent of black economic empowerment in its shareholding, and the level of cash and near cash in the company.”
Setzin said the company has received indications of interest from a number of people who want to buy Nail or some of its assets.
“Today we are making a formal announcement to give other interested parties an opportunity to talk to us,” he said.
Setzin said the announcement did not necessarily mean that Nail would be sold.
“A sub-committee of the board is also evaluating certain steps that could be taken that might provide greater value to shareholders.
“We have made a formal announcement because the Nail board is committed to optimising value for shareholders and believes a formal process, the initial steps of which are detailed in the announcement, may help.” – I-Net Bridge