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Tuesday, 9 December 2014

South African newspaper publisher considering £28m offer...........

Blackstar investment company wants to obtain full ownership of Times Media Group
Sunday Times
 An April 2014 issue of South Africa’s Sunday Times during the Oscar Pistorius trial Photograph: Public domain
South Africa’s largest English-language newspaper publisher, Times Media Group (TMG), is considering an offer from an investment company, Blackstar, to acquire total ownership.
Blackstar currently owns 32.5% of TMG shares and intends to acquire the remainder. It has offered about £28m in cash and shares for the 67.5% of TMG it doesn’t already own.
In a parallel deal, Blackstar will also seek to buy 22.9% of Kagiso Tiso Holdings, which owns radio stations in Ghana, and create a merger of the two.
Andrew Bonamour, chief executive of both Blackstar and TMG, said that the deal would help create “the only pan-African, London-listed media business”.
The combined company, to be known as Tiso Blackstar, would have a market capitalisation of about £250m, and would seek a full listing London stock exchange listing. At present, it is listed on the alternative AIM market in London.
It was in September 2012 that Blackstar first acquired a significant interest in TMG, which it has gradually increased while selling off non-core book assets.
TMG publishes one of South Africa’s most popular and profitable titles, the Sunday Times. It also owns Business Day and the Financial Mail, formerly part of a joint venture with Pearson, the owner of the Financial Times.
TMG reported a pre-tax profit of £18.4m in the financial year ending June 2014 compared with a pre-tax loss of £3.9m the previous year.