Listed South African media group Naspers has acquired 30% of the leading Brazil media company Abril SA for a cash consideration of $422-million. This transaction gives Naspers a stake in the growing Brazilian media market through a leading enterprise, the company said on Monday.
Abril is the largest magazine publisher in Brazil and one of the largest media companies in Latin America.
It has a 54% share of magazine circulation and 58% of magazine advertising revenues in Brazil.
Abril publishes five of the top ten magazine titles in Brazil. Its flagship newsweekly, Veja, is the fourth highest selling weekly globally. It has a circulation of approximately 1,1-million and an average readership of eight million, the largest of any news magazine in the world not owned by a United States-based group.
In addition, the company has Brazil’s leading educational book publisher and a pay television network.
The proceeds received by Abril from the transaction will be used to reduce debt and to fund expansion of the business, Naspers said.
After the transaction, the Civita family will hold 70% of Abril and Naspers 30%.
Naspers will fund the transaction from existing cash resources and will equity account its 30% interest. There are no unfulfilled conditions.
“The acquisition is in line with our strategy to invest in the most promising of the developing economies. Brazil is an attractive market, where strong economic growth is expected to drive domestic media expansion. This acquisition give us the opportunity to apply our expertise in various media types in another emerging market, to learn and to participate in growth,” said Koos Bekker, Naspers CEO.
Hein Brand, CEO of Media24, said: “To date, Naspers has had some success in establishing a presence in 53 countries like China, Greece, Thailand and the rest of Africa. This transaction will create a solid stake in Brazil. We look forward to working with Abril in sharing media expertise in pay TV, internet, magazines and book publishing. I expect that we will learn as much as we contribute. We aim to make this a beneficial partnership for both parties.” – I-Net Bridge