South African media firm Primedia has received a takeover proposal from a consortium led by its chief executive, the company said on Wednesday, sending its shares up more than 7%.
The consortium has proposed offering R25,50 per ordinary share and R24,50 per N share, valuing the company at almost R6-billion.
Shareholders holding 66,3% of the ordinary shares — excluding those held by the consortium — and 35,8% of the N shares have agreed to back the deal, it said.
Shares in Primedia rose by 7,4% to R24,90 by 12.10 GMT, outpacing a slightly firmer Johannesburg index of mid-cap stocks.
The consortium is led by black investor group Mineworkers Investment Company and William Kirsh, Primedia’s chief executive, the firm said.
Primedia said last month it had received a buyout approach from a group of investors that would lead to the delisting of the company and the restructuring of certain businesses into a new listed entity. It did not provide details.
Primedia has interests in radio, outdoor advertising and cinemas. It said the proposal has the backing of the company’s two biggest shareholders, Old Mutual Investment Group and Coronation Asset Management.
The approach is the latest in a string of buyouts of South African firms by private equity firms and senior managers. — Reuters