South African media group New Africa Investments Limited (Nail) said on Tuesday that it has received a number of non-binding indicative offers for its bidding process which it initiated recently. These are currently being evaluated by the delegated sub-committee of the Nail board.
It will be affording selected indicative bidders as well as the consortium comprising Investec Bank, Tiso Private Equity Fund, Safika Holdings and Mineworkers Investment Company, the opportunity of conducting due diligence investigations.
The black economic empowerment consortium, with the backing of Nail’s major
institutional shareholders, last week made a firm offer to acquire 100% of the issued share capital in Nail. It is offering nine rand per share cash, subject to a limited due diligence investigation of Nail and certain other conditions.
The offer represents a premium of 25% and 32% over the ordinary shares and the
N shares, respectively, and was calculated on the 30 day weighted average market price at close of business on 22 July 2003.
If successful, the consortium — which is more than 50% owned and controlled by black groups — will review the individual assets within the Nail stable in order to identify appropriate partners where necessary.
Nail’s media assets include a share of radio advertising house Radmark; stakes in radio stations Jacaranda, KFM and Kaya FM; 100% ownership of Sowetan, and 50% of Sowetan Sunday World and New Africa Books.
The group also has interests in film, television and outdoor advertising. Sunday Times’ Business Times reported at the weekend that at least one new firm bid for Nail was understood to have been submitted by Friday last week.
The paper reported that it was believed that a consortium including Johnnic Communications, Kagiso and Caxton put in a bid for the group on Friday, but Johncom chief executive Connie Molusi would not confirm this.
The paper said it is understood that in the nine rand offer, which is for the whole business, there is the intention to split the group among interested parties.
It was expected that the Tiso consortium would offer the stake in Jacaranda to Kagiso, and KFM and Nail Outdoor to Primedia, where MIC already has a stake.
Primedia issued a cautionary announcement on the same day that the Tiso consortium made its offer; it was previously reported that Primedia made a R12 bid for Nail some time ago.
Nail’s print assets, which include Sowetan and Sowetan Sunday World, were expected to be offered to Johncom.
Johncom, in its recent results, indicated it was interested in other areas of broadcasting and, although there are no details on its offer, it is understood it may want to keep some assets in addition to print, the paper added.
Nail said on Tuesday that a further announcement will be made in due course and in the interim shareholders are advised to continue to exercise caution in their dealings in their share dealings.
On the JSE Securities Exchange South Africa on Tuesday, Johncom’s share price was unchanged at R15,50, Caxton was steady at 650 cents, Primedia was unmoved at 450 cents, while Nail was unchanged at 910 cents.
However, Kagiso’s share price was up 3,66%, or 15 cents, to 425 cents. I-Net Bridge