{"id":36082,"date":"2013-04-18T15:28:55","date_gmt":"2013-04-18T13:28:55","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=36082"},"modified":"2013-04-19T09:14:22","modified_gmt":"2013-04-19T07:14:22","slug":"toptv-rescue-details-revealed","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/media\/36082\/toptv-rescue-details-revealed\/","title":{"rendered":"TopTV rescue details revealed"},"content":{"rendered":"

On Digital Media (ODM<\/a>) says that it is currently in talks over a deal with Chinese StarTimes<\/a> to revive flagging SA pay-tv operator TopTV<\/a>.<\/p>\n

Despite StarTimes identifying a number of \u201coperational deficiencies\u201d at TopTV, it believes it\u00a0can take on current\u00a0recumbent, DStv<\/a>.<\/p>\n

ODM began business rescue proceedings in November 2012, in order to stay afloat financially while it searched for an equity partner.<\/p>\n

StarTimes aims to acquire a 20% stake in TopTV, and provide \u201csufficient additional capital\u201d to pay off the company\u2019s creditors to ensure solvency.<\/p>\n

Local regulations currently cap foreign ownership on licensed broadcasting entities at 20%.<\/p>\n

StarTimes will pay R30 million to TopTV\u2019s main backer, the Development Bank of Southern Africa (DBSA<\/em><\/a>) and offer it an equity opportunity of 1.99% of the issued share capital in NEWCO.<\/p>\n

ODM is believed to owe the DBSA in excess of R200 million. It says the secured portion of the DBSA\u2019s claim will be discharged in full for R50.82 million.<\/p>\n

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.<\/p>\n

The group would also look to settle with preference shareholders of ODM, who have claims against the company, aswell as all other shareholders.<\/p>\n

TopTV\u2019s main shareholders include the Industrial Development Corporation (IDC<\/a>); First National Media; Kopano Ke Matla (Cosatu\u2019s investment arm); National Empowerment Fund; and satellite business SES.<\/p>\n

Preference shareholders claims would be discharged at an equivalent of R3.45 to the rand, subject to a maximum amount of R9.33 million.<\/p>\n

Shareholder claims will be discharged t an amount of R2.25 to the rand, subject to an amount of R21.59 million.<\/p>\n

StartTimes<\/strong><\/p>\n

Startimes says it started developing its African markets in 2002, and was issued the first digital TV operator license by Rwanda in 2007.<\/p>\n

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.<\/p>\n

The Asian company adds that it has established wireless digital TV platform in many African countries and will invest in mobile TV service platform and Internet business platform in the near future.<\/p>\n

Existing contracts<\/b><\/p>\n

According to StarTimes, one of the major weaknesses of TopTV has been the high costs paid for programme content.<\/p>\n

\u201cStarTimes has commenced discussions directed at negotiating and agreeing new contractual terms for the supply of programming and related services,\u201d ODM said.<\/p>\n

Job losses<\/b><\/p>\n

ODM says that a deal with StarTimes would give creditors a better return than what would result from liquidation.<\/p>\n

It adds that the deal would maximise the likelihood of TopTV\u2019s existence on a solvent basis, and preserve jobs and create a sustainable platform for further job creation.<\/p>\n

However, it notes that a restructuring of the company\u2019s workforce \u201cis often necessary\u201d to render the business sustainable.<\/p>\n

\u201cThe preliminary view of StarTimes is that job losses may occur from the implementation of this BR (business rescue) plan,\u201d ODM said, adding that retrenchments would be in accordance with the relevant laws.<\/p>\n

According to ODM StarTimes has come to its rescue and will provide temporary supervision of TopTV, and the management of its affairs, business and property, and by way the \u2018business rescue plan\u2019 will have control to restructure TopTV\u2019s affairs, business, property, debt and other liabilities in order to continue on a solvent basis.<\/p>\n

\u00a0More on TopTV<\/h3>\n

TopTV to be bought by Chinese firm?<\/a><\/strong><\/p>\n

Porn to stimulate TopTV recovery?\u00a0<\/a><\/strong><\/h3>\n

TopTV in trouble<\/strong><\/a><\/p>\n

MultiChoice ups SA subscriber base by 492K<\/strong><\/a><\/p>\n

TopTV CEO steps down<\/a><\/strong><\/p>\n

TopTV prepaid vouchers launched<\/a><\/strong><\/p>\n

Investors stay away from ailing TopTV<\/strong><\/a><\/p>\n

Why Vodacom should buy TopTV<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

On Digital Media says that it is currently in talks over a deal with China-based StarTimes to revive flagging SA pay-tv operator TopTV.<\/p>\n","protected":false},"author":9,"featured_media":36083,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5554],"tags":[5165,5642,78,26,1195,1215,5625,35],"class_list":["post-36082","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-media","tag-dbsa","tag-development-bank-of-southern-africa","tag-dstv","tag-headline","tag-industrial-development-corporation","tag-on-digital-media","tag-startimes","tag-toptv"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/36082","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=36082"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/36082\/revisions"}],"predecessor-version":[{"id":36093,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/36082\/revisions\/36093"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/36083"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=36082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=36082"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=36082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}