In its second black economic empowerment (BEE) initiative in as many days, media group Naspers has announced that it will implement a BEE initiative in Media24.
On Tuesday Naspers introduced a BEE shareholder in MultiChoice Africa (MCSA) in a R2,25-billion deal.
The Media24 BEE transaction will result in the acquisition by BEE individuals and groups of shares in Welkom Yizani Investments, which will hold ordinary shares in Media24 Holdings — the holding company of Media24.
A key element of the Media24 empowerment deal is the funding of the purchase by Welkom Yizani of up to 14,6-million shares in Media24 Holdings, with the total number of Media24 Holdings shares in issue being 97 333 333, for R730-million, based on an equity value of R5,017-billion and enterprise value of R6,08-billion.
The funding will be raised by the issue of up to 14,6-million Welkom Yizani ordinary shares at a price of R10 a share in terms of a public offer to the general black public, and the issue of up to 58,4-million Welkom Yizani preference shares at a price of R10 per share to Naspers.
The book profit arising in respect of the Media24 empowerment deal to Naspers amounts to approximately R631-million, it said.
The Media24 empowerment deal is subject to Welkom Yizani undertaking the public offer to the general black public to subscribe for ordinary shares in Welkom Yizani. The number of Media24 Holdings ordinary shares to be acquired by Welkom Yizani will depend on the amount raised by Welkom Yizani in terms of the public offer.
A further announcement will be made once the public offer has been completed, Naspers said. — I-Net Bridge