Times Media Group (TMG) says it has acquired a 65% interest in Mpower FM Radio, a commercial radio broadcaster based in Nelspruit, Mpumalanga, with a satellite studio in Emalahleni.
“It is the intention of TMG to re-launch and re-brand the station in early 2014 as part of a larger broadcast strategy in South Africa and Africa,” TMG said in a statement.
Mpower was launched in 2007, but experienced financial difficulties and was placed under business rescue in August 2013.
The station has been broadcasting an adult contemporary format, in English, to
the major regions of Mpumalanga.
The initial purchase consideration payable to the business rescue practitioner appointed in respect of the company is R6 million, of which R1.5 million has already been paid.
An additional R12 million has been committed to providing working capital for Mpower´s turnaround strategy over the next 2 to 3 years, TMG said.
The group said that its strategy includes the acquisition and development of broadcast assets, specifically radio and television.
TMG recently acquired an interest in Multimedia Ghana, “and will continue to look for additional broadcast opportunities in Africa, including South Africa”.
The group noted that in a broadcast landscape where frequencies and commercial licences are scarce, Mpower presented an opportunity to establish a footprint in radio for TMG.
“With a revised focus more appropriate to the audience of Mpumalanga, we believe Mpower will provide a solid contribution to the TMG broadcast portfolio.”
“TMG will support the commercialisation of the station with an advertising sales solution from its industry leading national sales team and provide additional management and programming resources,” TMG said.
Other shareholders in the station include African Media Entertainment and Direng Investment Holdings, as well as local shareholders, Mbombela Media Consortium.
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