Shares in Times Media Group (TMG) advanced 16.5% in morning trade on the JSE on Friday, after the group issued a cautionary announcement.
TMG, which owns SA newspaper titles including the Sunday Times, the Times, Business Day and the Sowetan, added R3.54 to trade at R24.99 a share, giving the group a market cap of around R3 billion.
The group released the following brief statement on SENS:
“Shareholders are hereby advised that there are new developments relating to the Company which may have a material effect on the price of the Company´s securities.
“Accordingly, shareholders are advised to exercise caution when dealing in the Company´s securities until a full announcement is made.”
In April, Times Media said it had entered into an agreement to acquire a 49% stake in Radio Africa (RAG) in Kenya for R195 million – another step in playing out its broadcast-focused strategy.
RAG is a radio, TV and newspaper business in Kenya, operating three of the top five radio stations in Nairobi, namely Kiss FM, Radio Jambo, and Classic 105.
At the start of the year, TMG announced the acquisition of a 60% interest in KwaZulu-Natal gospel radio station Vuma FM, for R25.6 million.
And in December 2013, it acquired a 65% interest in Mpower FM Radio, a commercial radio broadcaster based in Nelspruit, Mpumalanga, with a satellite studio in Emalahleni.
In September, TMG announced the launch of its online streaming entertainment service, Vidi.