- September 12, 2003
- Posted by: admin
- Category: Media & Broadcasting
Johannesburg – New Africa Investments Limited (Nail) would decide which buyer to recommend in days as Johnnic Communications (Johncom) said the value of its offer would beat the most recent one from Investec, the media company said yesterday.
“A decision is imminent and the final bidder supported by the [Nail] board will be communicated to the market … in a matter of days,” said Nail spokesperson Kenny Setzin.
Nail put itself up for sale in May.
Setzin confirmed that a group led by media and entertainment company Johncom was the preferred bidder, but said only one firm bid had been received – from a group led by financial services company Investec.
Johncom said its bid, which it said was formal and binding, would provide more value to shareholders than the Investec proposal.
“We believe we have put a package together that delivers more to shareholders than the most recent Investec offer,” said Prakash Desai, Johncom’s group financial and operations director.
Nail said on Wednesday the Investec-led group, which includes black empowerment firm Tiso Group, Safika Holdings and Mineworkers Investment Company, had raised its offer from R9 to R10.50 a share, valuing the company at R1.23 billion.
Nail’s most liquid N shares were unchanged on the news, up 2.38 percent at R10.34 in thin volumes. Johncom shares were untraded. Only one other group, Hosken Consolidated Investments, has publicly declared an interest in Nail.
Besides media stakes, which include Sowetan newspaper, Nail also has interests in financial services and car rental. The Johncom consortium includes black-led Kagiso Media and unlisted Caxton Publishers.
Nail closed R1.10 up to R9.75; Investec closed 55c down to R103.03; and Johncom closed 30c up to R16.81 yesterday.
Source: Business Report – Reuters