/ 17 December 2004

Primedia offers to buy Nail

Media group Primedia has made a firm offer to buy New Africa Investments Limited (Nail) for R45,1-million, or R0,356 a share.

This includes both Primedia’s ordinary and ‘N’ shares.

In terms of the offer, when Primedia takes control of Nail, Nail will have no liabilities and its assets will consist of the remaining 24,9% of the issued share capital of Kaya FM, a redeemable interest in a special-purpose vehicle that also has a 24% economic interest in Kaya FM, and loans made by Nail to P4 Radio Cape Town and P4 Radio Durban.

William Kirsh, CEO of Primedia, said: “The conclusion of the Nail deal is another milestone for Primedia and brings to conclusion Primedia’s successful bid for Nail’s key media assets, which has lasted nearly two years.

“The deal will result in Primedia having a material economic interest in Kaya FM as well as a non-controlling stake in the radio station. Kaya FM has very exciting prospects and has over one million listeners in the growing black high-income category in Gauteng.”

Kirsh said it is also pleasing that shareholders holding more than 50% of the ordinary shares and more than 50% of the “N” ordinary shares in Nail have indicated that they support and intend to accept the Primedia offer.

Based on these commitments as well as indications from other Nail shareholders, it is likely that Primedia will end up owning between 60% and 80% of Nail. — I-Net Bridge