/ 7 November 2007

Mvela in new talks that may affect shares

South African investment firm Mvelaphanda Group (Mvela) said on Wednesday that it was in talks that may affect its share price if successfully concluded, sending its stock price higher.

Mvela, led by black business tycoon Tokyo Sexwale, said the latest cautionary was not related to a deal announced on October 30, in which the firm said it had agreed with fund management group Allan Gray to buy up to 30% of Johnnic Communications’ (Johncom) media unit.

In that announcement Mvela said it will buy a minimum of 25,1% and a maximum of 30% of Johncom’s media business, provisionally named Opco, for R1,41-billion in cash.

Shares in Mvela added 1,90% to 10,70% after it released the latest cautionary statement, beating a 0,56% gain on the all-share index. – Reuters