Times Media set for exit from JSE

THE JSE’s only newspaper group is set to disappear from the bourse as Blackstar Group has made a firm offer to acquire the shares it does not already own in Times Media Group, the publisher of Business Day and the Sunday Times.

The transaction will proceed simultaneously with a merger between Blackstar and investment group Tiso Investment Holdings, which has an interest in Kagiso Tiso Investment Holdings, with stakes in a radio and television production company.

Times Media investors have the choice of 1.45 Blackstar shares for each Times Media share or a cash payout of R22 per share. The cash portion will be limited to a maximum R500m.

Blackstar will also merge with Tiso Investment Holding, whose only asset is 23% of investment company Kagiso Tiso Holdings (KTH), to create a business with an asset value of about R5bn. Times Media’s market capitalisation was R2.6bn yesterday. KTH has stakes in Idwala Industrial Holdings, MMI Holdings, Exxaro Resources, Kagiso Media and Alstom Africa Holdings. But in considering the merger, the competition authorities will be most interested in KTH’s Kagiso Media, which has stakes in radio stations such as Jacaranda, Gagasi, Kaya FM and East Coast Radio; and 50.01% of Urban Brew Studios, which produces shows for television.

The parties do not foresee competition commission concerns. “We’re buying only a minority stake in KTH, and there is no overlap in our business with Kagiso Media,” Blackstar and Times Media CE Andrew Bonamour said yesterday. He said the transactions are inter-conditional. Blackstar owns 32.5% of Times Media, which it will not be allowed to vote at the scheme meeting. Kagiso Asset Management holds 23.46%.

Investors owning more than 80% of Times Media, including the Public Investment Corporation (PIC) and Coronation Asset Management, have undertaken to support the transaction. The PIC owns 25.9% and Coronation 21.3% of the voting shares.