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.
Showing posts with label Opco. Show all posts
Showing posts with label Opco. Show all posts
Wednesday, October 31, 2007
Tuesday, October 30, 2007
ALERT: Mvela already taken control at Johncom?
There were strong rumours in the market late yesterday [Thursday] that Tokyo Sexwale’s Mvelaphanda group has quietly bought control of Johncom, owners of the Sunday Times, Sowetan and half of Business Day and the Financial Mail. An announcement may be made today.
Business Day understands that Mvela bought the stake in Johncom held by asset manager Allan Gray.
From Business Day and Sowetan Online:
By Peter Bruce
The transaction may have taken place late last week, just after Mvela published a cautionary notice. There is no indication how much was paid for the stake, but Allan Gray held about 30% of Johncom. Abdul David of Allan Gray described the reports as “speculation”.
Citibank recently valued that portion of Johncom which would remain, should management go ahead with plans to dispose of the Johncom stake in M-Net and hive off the stake in Caxton, at R6bn. That would imply Mvela paid about R2bn for a “forward stake” in what will be known as Opco or Avusa.
The new speculation arises out of a surprise announcement at the weekend by Johncom that it had ended talks with potential black investor groups. Johncom is still not viewed as a fully black-empowered company, and the need to become one had been driving the talks.
But Johncom withdrew a cautionary notice last week, just as Mvela was issuing one of its own.
Johncom is trying to sell its 38% stake in M-Net back to Naspers and to leave its 38% holding in Caxton, one of the country’s largest printers, in a listed shell of its own.
Terry Moolman, Caxton’s founder and owner, has taken the M-Net deal to the competition authorities.
It was accepted originally that front-running empowerment groups in the race to control Johncom were Mvela and Cyril Ramaphosa’s Shanduka group, but it may now be the case that Sexwale has done the deal on his own. It also seems clear that, by dealing directly with Allan Gray, Mvela will have avoided the many complications that could have arisen in dealing directly with Johncom management.
For the rest of this article, go here.
NVDL: And I had speculated earlier that Telkom would buy a stake, well, the new Telkom, Telkom Media. I guess they are still shedding their fixed line operations, and so in a sense it was a question of readiness and eligibility.
Business Day understands that Mvela bought the stake in Johncom held by asset manager Allan Gray.
From Business Day and Sowetan Online:
By Peter Bruce
The transaction may have taken place late last week, just after Mvela published a cautionary notice. There is no indication how much was paid for the stake, but Allan Gray held about 30% of Johncom. Abdul David of Allan Gray described the reports as “speculation”.
Citibank recently valued that portion of Johncom which would remain, should management go ahead with plans to dispose of the Johncom stake in M-Net and hive off the stake in Caxton, at R6bn. That would imply Mvela paid about R2bn for a “forward stake” in what will be known as Opco or Avusa.
The new speculation arises out of a surprise announcement at the weekend by Johncom that it had ended talks with potential black investor groups. Johncom is still not viewed as a fully black-empowered company, and the need to become one had been driving the talks.
But Johncom withdrew a cautionary notice last week, just as Mvela was issuing one of its own.
Johncom is trying to sell its 38% stake in M-Net back to Naspers and to leave its 38% holding in Caxton, one of the country’s largest printers, in a listed shell of its own.
Terry Moolman, Caxton’s founder and owner, has taken the M-Net deal to the competition authorities.
It was accepted originally that front-running empowerment groups in the race to control Johncom were Mvela and Cyril Ramaphosa’s Shanduka group, but it may now be the case that Sexwale has done the deal on his own. It also seems clear that, by dealing directly with Allan Gray, Mvela will have avoided the many complications that could have arisen in dealing directly with Johncom management.
For the rest of this article, go here.
NVDL: And I had speculated earlier that Telkom would buy a stake, well, the new Telkom, Telkom Media. I guess they are still shedding their fixed line operations, and so in a sense it was a question of readiness and eligibility.
Subscribe to:
Posts (Atom)