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UPDATE 1-S.Africa's Macozoma revives bid for media empire

(Writes through)

By Wambui Chege

JOHANNESBURG, July 24 (Reuters) - Prominent businessman Saki Macozoma renewed his quest to create South Africa's biggest black-owned media group by launching an unsolicited bid to take over media group New Africa Investments Ltd (NAIL) .

NAIL, which also has interests in financial services and car rental, said on Thursday a black-led consortium, including its CEO Macozoma's Safika Holdings, had made a firm offer to acquire 100 percent of NAIL's issued shares at nine rand a share.

The consortium also comprises Investec Bank Ltd , Tiso Group Ltd, and the Mineworkers Investment Company. All the consortium partners have a large number of black shareholders, in line with government policies to empower more of the people sidelined under apartheid.

But the offer, which NAIL said represents a 20-42 percent premium to the 30-day weighted average price of its ordinary and low-voting 'N' shares at close of business on July 22, was criticised by some minority investors who said it was too cheap.

"I think it's cheeky. It's opportunistic. The value (of NAIL) is definitely higher. Probably close to 11.50 rand, so nine rand is well below the fair value of the business," said one analyst at an asset manager who holds shares in the firm.

"At the end of the day, I'd be very surprised if it went through," the analyst added.

NAIL, whose assets include the popular Sowetan newspaper, as well as holdings in radio groups Kaya FM and Jacaranda, put up a for sale sign in May having seen its media ambitions thwarted by regulation. It invited bids for all or part of the firm.

On Thursday, the consortium said it believed its offer would speed up the sales process and unlock value for shareholders.

NAIL said it was revising its bidding process subsequent to receiving the unsolicited offer to give time to other interested bidders who had already been short-listed to submit offers.

Its ordinary shares finished 8.3 percent higher at 7.85 rand on just two transactions put through before the bid was announced. Its 'N' shares closed up 13.8 percent at 7.70 rand on 14 deals.

BLACK MEDIA EMPIRE

Macozoma has made no secret of his ambitions to create the country's biggest black-run media group, a move he believes is critical for the South African psyche.

His bid to take over another black group Kagiso Media was thwarted by regulatory authorities in 2002 because NAIL was considered to have an insufficient number of black shareholders and so would not be spreading the country's wealth.

If successful, the new deal will see NAIL's black empowerment credentials jump to 50 percent from the current level of below five percent, which analysts said could give Macozoma fresh impetus to launch a new bid for other media assets.

"The current structure was no longer benefiting empowerment and was prejudicing institutional investors. We are satisfied that this transaction addresses ongoing concern about black ownership in the media sector," the consortium said.

Fani Titi, Chief Executive of Tiso Group, told Reuters they were confident they would succeed in the deal, citing support in written form or options from investors holding an equivalent 50 percent of NAIL's shareholding. The consortium has a total stake of at least 18.88 in its ordinary and 'N' shares.