Tiso Blackstar sells off media assets
Tiso Blackstar Group has signed an agreement for the disposal of its South African media, broadcasting and content businesses (excluding Gallo and its South African radio assets) to Lebashe Investment Group for a purchase consideration of R800m. The company will also sell its media, broadcasting and content businesses in Ghana, Nigeria and Kenya and its SA radio assets to Lebashe for an additional consideration of R250m. The total purchase price will be R1,05bn, subject to certain adjustments.
Lebashe says it will ensure continuity of the business with the retention of key management and has confidence that the current business strategy is sound and viable.
Tiso Blackstar acquired an initial stake in the then Times Media Group in 2012 and bought it outright in 2015. It integrated BDFM, following the acquisition of the 50% of the business it didn’t own.
The SA assets to be sold includes its media business, which owns and operates various national (including Sunday Times, Sowetan and Business Day), regional and community newspapers, magazines and digital publications in consumer, business and specialist fields; and its broadcasting and content segment business.The group expects an internal restructuring of the group of companies of which Tiso Blackstar is the ultimate holding company. Radio assets include Rise Broadcast and Vuma 103 FM.
The transaction will allow Tiso Blackstar to focus on its remaining businesses and investments, specifically the Hirt & Carter operation. It will retain the Gallo Music Group business and develop it further as the music industry continues to evolve. The company says it remains committed to ensuring it unlocks value in its Kagiso Tiso Holdings stake in the short-to-medium term.
Tiso Blackstar expects the SA sale to become commercially effective by 30 November 2019. On the closing date of the sale, Lebashe shall pay 95% of the purchase in cash. The balance will be paid once the tangible nett asset value adjustment (if any) has been finalised.
Certain key management, including Andrew Bonamour, having concluded a consultancy agreement with Tiso Blackstar Group SA in terms of which they will provide consulting services to this group of companies.