/ 4 November 2007

Mbeki’s men bid R7-billion to buy Johncom

President Thabo Mbeki’s political adviser and a top government official are among a group who want to take over Johnnic Communications, the company that owns the Sunday Times.

Koni Media Holdings, a company belonging to Mbeki’s adviser Titus Mafolo, Foreign Affairs Department spokesperson Ronnie Mamoepa, former chief of state protocol Billy Modise and a businessman, have launched a R7-billion bid for 100% of Johncom.

”As media professionals, we have been interested in obtaining the right media and entertainment assets for a long time. We could not have wished for a better opportunity than what presents itself through Johncom,” said Koni Media Holdings group CEO Groovin Nchabeleng.

Nchabeleng said the company had made an offer to Johncom on Monday and was to meet with it again at a later stage.

This is despite Mvelaphanda Holdings acquiring 30% of Johncom recently.

”It is our intention to establish a fully integrated media and entertainment company that could take the industry in this country to levels that are fully competitive with companies in Europe, the UK and the USA,” said Nchabeleng.

Johncom’s print titles include the Sunday Times, Sowetan, and Elle as well as Exclusive Books, NuMetro cinemas and Gallo music.

Following Tuesday’s announcement that Mvela had bought the stake, the Koni shareholders scrambled to raise money and have their bid considered by the Johncom board, reported the paper.

According to the Sunday Times, Koni Media had been in talks with the

Public Investment Corporation (PIC) to raise the money.

PIC chief executive Brian Molefe said no deal to fund the Koni Media bid had been concluded.

”The PIC has not agreed to any funding. There is no truth that the funding has been approved by the PIC for this [deal],” said Molefe.

The paper reported African National Congress MP Kader Asmal as saying it was ”astonishing that civil servants are able to develop time and energy for what is really a takeover bid”.

Asmal said that at issue was the danger of control of newspapers by politically active people. He urged the Department of Public Service and Administration to ”scrutinise this very carefully”. – Sapa