Tiso Blackstar Group, the publisher of titles like the Sunday Times, TimesLive, Sowetan and Business Day, has sold its media businesses to Lebashe Investment Group for a total of R1.05 billion.
The sale, which excludes Gallo Music Group and Tiso’s South African radio assets, comes mere days after the group sold the Sunday World newspaper to Fundudzi Media, owned by David Mabilu.
Tiso said the sale will allow it to focus on its remaining businesses and investments, specifically Hirt & Carter.
“The Transaction will require an internal restructuring of the group of companies of which Tiso Blackstar is the ultimate holding company , in order to constitute Tiso Blackstar Group’s existing interests in its broadcasting, content and media businesses in South Africa, Ghana, Nigeria and Kenya in separate legal entities which are capable of being disposed of to Lebashe,” the group said in a statement.
“The board of directors of the Company (“Board”) is of the view that the Transaction is in line with Tiso Blackstar’s strategy and believes the sale will unlock significant value for its shareholders while also ensuring that the media business has a strong and committed shareholder in Lebashe to take it forward.
“Lebashe will ensure continuity of the business with the retention of key management and has confidence that the current business strategy is sound and viable. Lebashe believes there will be further opportunities to grow the assets through both acquisition and by growing market share. The business offers a diverse reach unmatched in the South African and broader African market spanning print, digital, TV, radio and films,” the statement added.
“Given that the financial information relating to the SA Sale has not been published in this announcement and that the formal agreements in respect of the Africa and Radio Sales have not yet been executed, shareholders are advised to exercise caution when dealing in the company’s securities until a further announcement is made regarding the financial information in respect of the SA sale and information on the Africa and Radio sales.
Tiso Blackstar expects the SA sale to become commercially effective by 30 November this year.