Share

Caxton’s bid to halt Media24/Novus merger dismissed

Johannesburg – The Competition Tribunal has rejected publishing house Caxton’s application to stop the Media24 merger with printing group Novus Holdings [JSE:NVS].

According to a statement issued by the Tribunal on Thursday, Caxton wanted clarity on the control structure relating to the merger. The Tribunal dismissed the application on this basis, indicating that that the control structure was not relevant to the proposed transaction in light of a condition attached to a de-merger.

The condition was recommended by the Competition Commission. In the case of a de-merger Media24 would divest its majority shareholding in Novus to parent company Naspers, and maintain a 19% non-controlling stake of Novus.

READ: Commission recommends Media24 divest majority stake in Novus

“In terms of this condition Media24 will sell down its existing stake in Novus to a level at which Media24 will no longer exercise control over Novus,” said the Tribunal.

Media24 previously said that it remains committed to its print media operations, despite the proposed unbundling. “Print media is and will remain a core part of Media24’s portfolio. We are excited about the future of Media24, and the conclusion of this process enables us to focus on our objective of enriching the lives of our consumers through our strong portfolio of digital and print media products, efashion, ecommerce services and online job classifieds.”

READ: Caxton wants answers from Koos Bekker on Media24-Novus merger

A merger between Media24, Novus Holdings - formerly Paarl Media Group, and Natal Witness was approved by the Competition Tribunal as far back as 2012, despite submissions by the Commission and Caxton.

In February 2015 Media24 announced intentions to list Novus on the Johannesburg Stock Exchange. The Competition Tribunal later dismissed an appeal to stop the listing in March 2015, Fin24 reported.

A restated management agreement which led to the listing indicated a change in control at Novus, the Competition Appeal Court ruled in November 2015. Subsequently Media24 was required to notify the competition authorities of the transaction by way of a merger filing, which was filed to the Commission in February 2016.

*Fin24 is part of 24.com, a subsidiary of Media24

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.82
+0.4%
Rand - Euro
20.38
+0.3%
Rand - Aus dollar
12.30
+0.3%
Rand - Yen
0.12
+0.3%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders