SA consortium bids for TopTV: report
The tale over pay-television operator TopTV has taken another twist after it was reported that a South African consortium, led by Malose Kekana, has submitted a last minute bid for the financially-strapped company.
On Digital Media (ODM), the parent company of TopTV, began business rescue proceedings in November 2012, in order to stay afloat financially while it searched for an equity partner.
Earlier this month, the group announced that Chinese firm StarTimes aims to acquire a 20% stake in TopTV, and provide “sufficient additional capital” to pay off the company’s creditors to ensure solvency.
Local regulations currently cap foreign ownership on licensed broadcasting entities at 20%.
However, according to a report by Business Day on Monday (29 April), ODM’s business rescue practitioner, Peter van den Steen, confirmed that the group has received an unsolicited offer and that he would “fulfill (his) duty to inform the shareholders at a meeting on Tuesday”.
Businessmen Given Mkhari and Malose Kekana are believed to be behind a consortium, offering R400 million for TopTV, according to Business Day, although the paper did not cite any sources.
Mkhari is CEO of media and communications group, MSG Afrika Investment Holdings, while Kekana runs an asset management business and is the former CEO of Umsobomvu Youth Fund.
It is understood that a voting for the offer from StarTimes for TopTV is expected to take place on Tuesday (30 April).
StarTimes
Startimes says it started developing its African markets in 2002, and was issued the first digital TV operator license by Rwanda in 2007.
Currently the group has licenses and registered companies in 10 African nations including: Nigeria, Tanzania, Uganda, Rwanda, Burundi, and Republic of central Africa, Guinea and Kenya.
According to ODM, StarTimes has offered to pay R30 million to TopTV’s main backer, the Development Bank of Southern Africa (DBSA) and offer it an equity opportunity of 1.99% of the issued share capital in NEWCO.
ODM is believed to owe the DBSA in excess of R200 million. It says the secured portion of the DBSA’s claim will be discharged in full for R50.82 million.
The Chinese firm will also pay R37.5 million to all creditors, outside of the DBSA, escalating by an amount of R2.50 per month from 1 June until the implementation date.
The group would also look to settle with preference shareholders of ODM, who have claims against the company, aswell as all other shareholders.
TopTV’s main shareholders include the Industrial Development Corporation (IDC); First National Media; Kopano Ke Matla (Cosatu’s investment arm); National Empowerment Fund; and satellite business SES.
Porn
On 24 April, The Independent Communications Authority of South Africa (Icasa) granted ODM the ability to broadcast the three adult content channels Playboy TV, Desire TV and Private Spice, which the group touted would help in its bid for more subscribers.
BusinessTech tried to reach ODM for comment on the matter, but had not received response by the time of publishing.
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