Image: Steve Buissinne
Tiso Blackstar, the owner of various media assets including the Sunday Times, Business Day and the Financial Mail, is selling the rump of its business to Lebashe Investment Group for over R1-billion.
The JSE-listed media group, which has a long history in the newspaper publishing industry in South Africa, said on Thursday, after markets closed, that it is disposing of most of its South African media, broadcasting and content businesses “subject to certain adjustments” for R800-million.
It has also reached agreement to dispose of its media, broadcasting and content businesses in Ghana, Nigeria and Kenya, as well as its South African radio assets, to Lebashe for an additional R250-million. Lebashe is the same empowerment group buying into IT services conglomerate EOH Holdings.
The company has worked hard to ensure the media business has modernised from its legacy structures
The purchase consideration of the South African asset sale will be adjusted for debt, cash and normalised working capital, and any movement in tangible net asset value.
“Tiso Blackstar is in the process of finalising the formal agreements (regarding) the Africa and radio sales, which are expected to be signed shortly,” it said. The total purchase consideration is R1.05-billion, “subject to certain adjustments”.
The group, which was previously known as Times Media Group, and before that as Avusa and Johnnic Communications, describes itself as South Africa’s largest English-language publishing group.
It said the deal with Lebashe will “require an internal restructuring … to constitute Tiso Blackstar Group’s existing interests in its broadcasting, content and media businesses in South Africa, Ghana, Nigeria and Kenya into separate legal entities that are capable of being disposed of to Lebashe”.
‘Successfully integrated’
“Tiso Blackstar has helped to stabilise and grow the media, broadcasting and content assets since the acquisition of an initial stake in the-then Times Media Group in 2012 and the subsequent outright purchase in 2015,” it said. “It has successfully integrated BDFM (owner of Business Day, the Financial Mail and specialist television assets) following the acquisition of the 50% of the business it did not own, cleared out a significant number of underperforming and non-core businesses, significantly grown its audience, especially in digital, and worked hard to ensure it has the right talent in place to take the titles and the business forward.”
It said it has put its film and television businesses on a “strong footing” in the Ghanaian and Kenyan broadcasting markets. “The company has worked hard to ensure the media business has modernised from its legacy structures into an agile and forward-looking company with a sustainable future.”
Tiso Blackstar will retain its interests in Hirt & Carter and Gallo Music Group as well as its stake in Kagiso Tiso Holdings, whose assets include major commercial radio stations.
Lebashe has promised to keep key management in Tiso Blackstar and has said it “has confidence that the current business strategy is sound and viable”.
Tiso Blackstar expects the sale of its South African assets to take place by November 2019. At that time, Lebashe will pay 95% of the purchase consideration in cash. The balance will be paid once the tangible net asset value adjustment (if any) has been finalised. Tiso will use the money to reduce debt and invest in Hirt & Carter.
Successful conclusion of the deal remains subject to the approval of the competition authorities. — © 2019 NewsCentral Media