Listed media group Primedia on Monday announced the first step in a new black economic empowerment (BEE) deal whereby the economic value of the stake held by BEE shareholder the Mineworkers Investment Company (MIC) will increase from approximately 6,7% to about 20%.
In the first stage, the MIC will buy 15-million Primedia “N” shares from Active Value Fund Managers at R13,75 per share, “cum” the final distribution to be made by the listed group on or about October 31.
The acquisition is the first stage of a larger BEE deal that will be subject to certain shareholder approvals, the company said, informing the market that more details will be made available in due course.
Assuming shareholder approval is secured for the total deal, the mineworkers’ company’s resultant stake will be worth R640-million at current market prices. This will make it the largest BEE transaction in the media sector to date, said the company, whose interests span Kaizer Chiefs, Ster-Kinekor, iafrica.com and radio stations 702, 94.7 Highveld Stereo and Cape Talk.
“This is another positive development for empowerment at Primedia, which will also significantly strengthen the group’s strategic profile. Primedia has actively facilitated many opportunities to strengthen the MIC’s shareholding in Primedia and we are very gratified to see the results of all our efforts since 1996 being manifest in this most recent transaction,” said CEO William Kirsh.
“With MIC’s economic interest increasing to 20%, we will be well on our way to fulfilling our charter requirements, further underlining Primedia’s position as the leader of our sector in BEE.”
Keshan Pillay, executive director at the BEE group, said: “The MIC’s intent to acquire another significant tranche of shares in Primedia, through an outright purchase of shares from Active Value, is a reflection of our confidence in the strategic direction and prospects for the group.”
Active Value chief executive Julian Treger said his company is pleased to be facilitating the deal to enhance BEE at Primedia, adding that it anticipates the listed group’s strong performance over the past few years to continue.
The anticipated empowerment deal is subject to certain shareholder approvals and conditions precedent. — I-Net Bridge