Black­star ris­ing

Finweek English Edition - - IN THE NEWS -

Times Me­dia Group’s largest share­holder, the Black­star Group, in­tends to buy the re­main­ing 62.5% of shares for R2bn and delist the com­pany from the JSE. In­vestors have the choice of 1.45 Black­star shares for each Times Me­dia share, val­ued at R24.50 a share, or a cash pay­out of R22 a share. The cash por­tion will be limited to a max­i­mum of R500m.

In a con­cur­rent trans­ac­tion Black­star will also merge with Tiso In­vest­ment Hold­ings, which has a 23% stake in in­vest­ment com­pany Kag­iso Tiso Hold­ings (KTH). The merged en­tity will have an as­set value of about R5bn − al­most dou­ble Times Me­dia’s cur­rent mar­ket cap­i­tal­i­sa­tion of just be­low R2.8bn and will be a black ma­jor­ity-owned JSE and Lon­don-listed com­pany known as Tiso Black­star Group.

Black­star i ntends t o r ai s e debt f rom Stan­dard Bank and FirstRand to fi­nance the pro­posed trans­ac­tions. list­ing of the re­named TMG. The 2012 trans­ac­tion sad­dled the com­pany with more than R700m in ad­di­tional debt, based on fi­nan­cial re­ports for the pe­ri­ods ended March and De­cem­ber 2012. The com­pany’s out­stand­ing debt was at R2.6bn at the end of De­cem­ber 2012 and has since been re­duced to R1.6bn (as of 30 June 2014, the lat­est avail­able re­sults).

By the num­bers

Fig­ures from the Au­dit Bureau of Cir­cu­la­tions of South Africa for the fourth quar­ter last year show growth at some of the com­pany’s print ti­tles.

“Our mag­a­zine di­vi­sion en­joyed ro­bust profit growth pri­mar­ily due to the launch of new ti­tles tar­geted at our ex­ist­ing news­pa­per sub­scribers,” Bon­amour said. “SA Home Owner has grown its sales at a time when con­sumer mag­a­zines as a whole ex­pe­ri­enced a 4% decline. Fi­nan­cial Mail is now also prof­itable.”

He doesn’t share t he neg­a­tive sen­ti­ment about print. “We have grown prof­itabil­ity and the mar­gins of our print ti­tles. The is South Africa’s largest news­pa­per and we don’t see its

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.