• Grain pain

    Corn crops could break records this year, but for farmers the bounty has a dark side.

  • Node joins TV revolution

    The movie-on-demand business has a new contender, says Arthur Goldstuck.

  • SA market needs Nokia

    A user says the brand should stay as it has great offerings at reasonable prices.

Loading...
See More

SACP opposed to Avusa takeover

Jun 21 2012 18:09 Sapa

Related Articles

Avusa diluted earnings fall 36%

Avusa up as UBS raises price target

No job cuts expected at Avusa

Avusa Heps at least 35% lower

Avusa expects HEPS to be at least 85% lower

Avusa shares up nearly 13% on offer

 

Johannesburg - The proposed Avusa [JSE:AVU] takeover by Mvelaphanda was a deliberate attempt to create a media empire, the SA Communist Party (SACP) said on Thursday.

"The SACP is strongly opposed to concentration of the ownership of media in a few monopolies," spokesperson Malesela Maleka said in a statement.

"Monopoly in media poses one of the most serious threats to diversity of opinion and media freedom."

Last week, the Mvelaphanda Group (Mvela) announced a R3bn cash-and-share offer to buy the media group Avusa.

The offer would be made through its wholly-owned subsidiary, Richtrau No 229.

Mvela currently owns 21.92% of Avusa, also through Richtrau.

The group is offering R24 per Avusa share - representing a 19% premium of its average share price over the past 30 days - or a share exchange.

Avusa shareholders could choose to exit the investment or receive 1.478 Richtrau shares for every Avusa share they own.

Maleka said modern democracies needed a choice of politics and ideas.

Choice required access to truly diverse and competing sources of news, literature, entertainment, and popular culture.

"We will be told that should the owners of media houses abuse their power, the public will punish them by exercising their choice not to buy the paper.

"But we all know that, as is the situation in South Africa, there is nothing to choose from in the first place."

He said there would be serious social consequences if this takeover was allowed to go through.

"Power and control of access to information must never be allowed to be in fewer hands," Maleka said.

sacp  |  mvelaphanda  |  avusa
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
12 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.
 
 

6 life hacks you simply have to know

A few simple tricks can make your life so much easier!

 
 

For chic geeks...

Device lets disabled people talk through their nose
It’s THIS easy for someone to steal your ATM pin!
This is why you should install iOS 8
17 photo illusions that look so real

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...