Kagiso Media announced yesterday afternoon that it has bought into radio stations Kaya FM, P4 Cape Town and P4 Durban. The deal saw Kagiso Media team up with Makana Investment Corporation and Tiso Radio to form a new consortium in the South African radio environment, Makana Radio Communication.
The transaction is subject to the approval of regulator Icasa and could see Kagiso Media owning an effective 16,67% in Kaya, bringing the total ownership of the new consortium in Kaya to 50%. Kagiso Media will own 24,9% in both P4 Cape Town and P4 Durban, and Makana 33,3% in each station, with Tiso owning the balance at 41,8%. Together the consortium will own 100% of both P4 Cape Town and P4 Durban.
In February Makana director Svein Larsen informed eMedia that the Makana group was deciding if it wanted to be an independent player, ‘a smaller but more aggressive player than Primedia or Kagiso, or if [it] should team up with one of the big companies.”
That decision has been made, and the new consortium is now geared to take on local radio giant Primedia, which recently acquired Kfm in the Western Cape for a reported R300-million.
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