Times Media Group (TMG) says it has acquired a\u00a065% interest in Mpower FM Radio,\u00a0a commercial radio broadcaster based in\u00a0Nelspruit, Mpumalanga, with a satellite studio in\u00a0Emalahleni.<\/p>\n
“It is the intention of\u00a0TMG to re-launch and re-brand the station in early 2014\u00a0as part of a larger broadcast strategy in South Africa\u00a0and Africa,” TMG said in a\u00a0statement.<\/p>\n
Mpower\u00a0was launched in 2007, but\u00a0experienced financial difficulties and was placed under\u00a0business rescue in August 2013.<\/p>\n
The station has been\u00a0broadcasting an adult contemporary format, in English, to
\nthe major regions of Mpumalanga.<\/p>\n
The initial purchase consideration payable to the\u00a0business rescue practitioner appointed in respect of the company is R6 million, of which R1.5 million has already been paid.<\/p>\n
An additional R12 million has been committed to\u00a0providing working capital for Mpower\u00b4s turnaround\u00a0strategy over the next 2 to 3 years, TMG said.<\/p>\n
The group said that its strategy includes the acquisition and development\u00a0of broadcast assets, specifically radio and television.<\/p>\n
TMG recently acquired an interest in Multimedia Ghana, “and will continue to look for additional broadcast\u00a0opportunities in Africa, including South Africa”.<\/p>\n
The group noted that in a\u00a0broadcast landscape where frequencies and commercial\u00a0licences are scarce, Mpower presented an opportunity to\u00a0establish a footprint in radio for TMG.<\/p>\n
“With a revised\u00a0focus more appropriate to the audience of Mpumalanga, we\u00a0believe Mpower will provide a solid contribution to the\u00a0TMG broadcast portfolio.”<\/p>\n
“TMG will support the\u00a0commercialisation of the station with an advertising\u00a0sales solution from its industry leading national sales\u00a0team and provide additional management and programming\u00a0resources,” TMG said.<\/p>\n
Other shareholders in the station include\u00a0African Media\u00a0Entertainment and Direng Investment Holdings, as well as\u00a0local shareholders, Mbombela Media Consortium.<\/p>\n
Independent Newspapers accuses Times Media of \u201cdirty tricks\u201d<\/strong><\/a><\/p>\n