Wednesday, October 31, 2007

Mvela to acquire Johncom stake

Tokyo Sexwale’s Mvelaphanda Group is to acquire between 25.1 percent and 30percent of Opco, a company being formed to hold the media and entertainment assets of Johnnic Communications.

by Xolile Bhengu, in The Times.co.za

The stake is being acquired from client portfolios, which are currently managed or advised by fund managers Allan Gray, for just over R1.4-billion.

The announcement saw Johncom’s share price jump more than 5 percent to R109.50, while Mvela’s weakened to 50c to R53.

Yolanda Xuba, Mvela chief executive said the deal will see it obtain part ownership of Sunday Times, Sowetan, Sunday World, The Herald, magazine publications as well las retail divisions of Johncom that include Exclusive Books and Nu Metro.

She said the deal was a culmination of two years of talks between Mvela and the media group. The Johncom board has asked that the deal only be done after the actual unbundling.
Johncom’s unbundling is estimated to be worth R7-billion. Mvela said it already had R1-billion in equity and was speaking to several banks for the remainder of funding.

For the rest of this article, go here.

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