Rupert makes move on print

SOUTH African Rich List stalwart Johann Rupert made his first major move into print media on Friday, offering R2.34-billion through his company Remgro to buy ElementOne.

ElementOne’s only asset is a 40% stake in Caxton and CTP Publishers and Printers, which owns The Citizen as well as community newspapers.

In partnership with Rand Merchant Bank, Rupert’s company said it would offer R475-million in cash and the rest in stock at a price of R22.51 per share.

Caxton’s share price shot up 25% on Friday, as Remgro looked to bolster its holdings in sectors in which it has been less active — media, infrastructure and sport. Remgro already has a stake in Sabido, which owns e.tv.

ElementOne is a bit of an orphan — the Caxton shares were spun off into this separate vehicle from Avusa, the company which became Times Media Group and owns the Sunday Times. It is no longer listed on the JSE and its shares trade over the counter.

The offer appears to be a good one for ElementOne’s investors as it is pitched at a 16% premium to its share price. It seems almost a done deal too, as 78% of ElementOne’s shareholders, including fund managers Allan Gray and Coronation, have agreed.

ElementOne says the rationale is that its shares have “always traded at a significant discount to its underlying” investment in Caxton, and this presents a “unique opportunity” to “unlock value”.