MDIF acquires majority stake in M&G
The Media Development Investment Fund, a New York-based not-for-profit investment fund for independent media in emerging markets, this week announced that it had acquired a majority stake in the Mail & Guardian.
The restructured ownership also allows the M&G’s chief executive, Hoosain Karjieker, to acquire a minority stake in the business as part of a black economic empowerment transaction. The former majority shareholder, Trevor Ncube, has disposed of his equity interest in the M&G.
“MDIF has worked with the M&G for more than a decade and knows the company intimately,” said the fund’s chief executive, Harlan Mandel. “We have invested in the M&G because it is a uniquely important media organisation with a great future. Its independent reporting has a profound impact on the national debate and it is a beacon for independent journalism across the continent and indeed the world.
“We are committed to building on this legacy and re-establishing the M&G as a commercially and journalistically dynamic institution at this important time in South African politics.”
The MDIF has a 22-year history of helping to build print, digital and broadcast media companies in emerging markets. Since 1996, it has invested in more than 100 media companies in 39 countries on five continents.
Karjieker said the MDIF’s knowledge of the M&G would provide a good foundation for the future of the company. “This new structure bodes well for the long-term sustainability of the M&G.”
The MDIF’s deputy chief executive, Mohamed Nanabhay, said: “We are excited about this new chapter for the M&G, and are looking forward to working with management, editorial and other staff to revive this great and relevant company’s fortunes. The M&G is rightly recognised as one of Africa’s great media brands and we are thrilled to be able to bring our expertise in helping to build media companies to such an iconic institution.”
The MDIF first provided a loan to the M&G in 2003 when Ncube bought a controlling interest from the United Kingdom’s Guardian Media Group at a time when the company was in a perilous financial position. Further debt and equity investment helped to stabilise the company, build up its distribution network and develop its award-winning digital news site.
Mandel said: “Trevor Ncube has played a vital role in the history of
M&G, demonstrating an unwavering commitment to its editorial independence and high standards of journalism. He deserves enormous credit for successfully turning around a failing paper and charting a new strategy with new relevance for post-apartheid South Africa.”