Kagiso Media shares soar on acquisition offer

Black-owned and managed investment holding company, Kagiso Tiso Holdings (KTH), has announced its firm intention to purchase the remaining shares in listed media group, Kagiso Media (KML).

Kagiso Tiso currently owns 51.1% of KML.

Shares in Kagiso Media advanced R4.00 (or 17.13%) to R27.35 by close of play on the JSE on Tuesday (10 September), giving the company a market cap of R3.67 billion.

Kagiso Media operates primarily through:

  • Broadcasting with radio assets including East Coast Radio (100%), Jacaranda FM (80%), OFM (24.9%), and an economic interest in Kaya FM (47.5%);
  • Information and other which includes Juta (100%), Knowledge Factory (70%);
  • Digital Services which includes Gloo Digital Design (60%) and Kagiso.MSN;
  • And content where it holds a controlling stake (50.1%) in Urban Brew Studios.

Kagiso Tiso Holdings was created through a merger between Kagiso Trust Investments and Tiso Group in July 2011.

The company says it has a net asset value of approximately R9 billion and in addition to media, boasts exposure to other key sectors in the economy, ranging from power, insurance, financial services, and health.

Through this transaction KTH has offered minority shareholders a cum dividend cash consideration of R28.50 per share, which represents a 34.5% premium to the 30 day volume-weighted average price (VWAP) prior to KML’s cautionary announcement on 10 June 2013.

Vuyisa Nkonyeni, CEO of KTH said: “KML has always been a key investment and we aim to build on its success. This transaction forms part of the broader KTH investment strategy and also contributes positively to the transformation of a key sector of the economy.”

Subsequent to attaining shareholder and regulatory approvals, KTH plans to delist KML from the JSE.

“Once approved, the KML buy-out will become a significant milestone for transformation on the South African landscape,” Kagiso Tiso said in a statement on Tuesday (10 September).

Shareholders of KML will vote on the transaction at a special general meeting to be held within the next two months. The deal will be subject to regulatory approvals.

More on Kagiso Media

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Kagiso looks to MSN Africa portals

Kagiso CEO steps down

MSN business set for growth in 2013: Kagiso

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Kagiso Media shares soar on acquisition offer