Bonamour believes that TMG has created good value for shareholders.
TMG’s current market capitalisation of R2.8bn will increase once Blackstar mergers with Tiso, which in turn could make the company more liquid and attractive to investors. At the time of going to print TMG shares traded at R22 – nearly double its listing price in September 2012.
“Remember, we listed TMG at R11.40 in 2012. Once the buyout happens TMG shareholders will have made a significant return.”
Its current market capitalisation of R2.8bn compares with Avusa’s R2.5bn prior to the announcement of the deal in June 2012. profitability declining anytime soon.”
Vicky Myburgh, head of entertainment and media at PricewaterhouseCoopers, also believes prospects for the printed media in SA look relatively healthy compared to more developed countries. “The threat from digital media is more muted here because fixed broadband penetration in South Africa is expected to remain low.”
Away from print
Bonamour, however, has no qualms about diversifying from print. The cashand-share deal through which Blackstar