Listed media group Moneyweb Holdings has agreed to sell 80% of its 19,62% stake in radio station Classic FM to empowerment group Huntrex for a cash consideration of R4-million, Moneyweb said on Wednesday.
In a statement, Moneyweb said the disposal will take effect from the earlier of February 15 or the payment of the first tranche of R2-million.
It opted to sell its stake, it explained, following the split between itself and Classic FM in July 2004, when the company moved its business programming to other radio stations.
Previously it had broadcast a business programme hosted by Alec Hogg, the executive chairperson of Moneyweb.
Moneyweb has now agreed to relinquish its direct board-level representation and will therefore no longer be able to influence the financial performance of Classic FM.
The sale ensures that the original investment of five million Moneyweb shares plus a R2,1-million cash injection will be recouped, while the residual 4% shareholding has been retained “for strategic reasons”.
Moneyweb added it will use the proceeds of the disposal to fund internal operations and to take advantage of any opportunities that might arise.
Huntrex, meanwhile, is a newly formed black economic empowerment entity represented by Dominic Ntsele, with Irvin Khoza, a very prominent soccer personality, as another shareholder.
Ntsele, the MD of Capacity Building Group, a lobbying practice advising clients on government and media-related issues worldwide, is a communications strategist with international experience.
In terms of the disposal agreement, Ntsele will be appointed to the board of directors of Classic FM. — I-Net Bridge