A consortium comprising South African media groups Caxton and CTP Publishers, Johncom and Kagiso Media confirmed on Wednesday that it is participating in and is the preferred bidder in the tender process announced by New Africa Investments Limited (Nail) on May 29.
This follows the announcement by Nail on July 24 that it had received a firm intention to make an offer from a consortium comprising Investec Bank, Tiso Group, Safika Holdings and Mineworkers Investment Company.
This consortium was offering a cash consideration of nine rand per share, representing a premium of 20% and 42% to the 30-day weighted average price of Nail’s shares.
On August 6 investment company Hosken Consolidated Investments confirmed that it had submitted a written conditional indicative expression of interest to the board of Nail regarding the potential acquisition of the entire issued ordinary and “N” ordinary shares in the capital of Nail by HCI.
It has also emerged that a new contender, involving Brait and empowerment company Medu Capital, is also in the running, Business Day reports.
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.
In a joint statement issued on Wednesday, the Kagiso/Johncom/Caxton consortium indicated that should its negotiations with Nail result in the consortium making a firm intention offer, this may have a material effect on the price of Johncom and Kagiso Media and shareholders are accordingly urged to exercise caution. — I-Net Bridge