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Johannesburg - Black consortium Dynamic TV has submitted an alternative business rescue plan for cash-strapped TopTV operator On Digital Media (ODM), the company said on Monday.
Dynamic TV Consortium, led by Given Mkhari of MSG Afrika Media and Malose Kekana of Falk Trading, confirmed it had submitted an alternative plan for ODM's business rescue.
On October 29 2012, ODM resolved to begin business rescue proceedings after experiencing financial distress. A business rescue practitioner, Peter van den Steen, was appointed to develop a rescue plan for ODM.
Van den Steen has since received a proposal from a Chinese firm called StarTimes.
However, MSG Afrika Media's chief investment officer Andile Khumalo, said the company's bid presented a rare opportunity for black people to own a commercial broadcasting licence, generally considered a scarce resource and an asset of national interest.
"Dynamic TV Consortium's approach to the business rescue of ODM is informed by the strategic desire to promote a successful South African business; support local manufacturers, distributors and installers; and to stimulate the independent production of locally developed, home-grown African content."
MSG Afrika Media is a black-owned media and communications group with interests in radio, advertising, and television production.
Falk Trading Proprietary is wholly owned by the Kekana Trust. Malose was CEO of Umsobomvu Youth Fund.
Acting TopTV CEO Eddie Mbalo said: "[Van den Steen] said the only way that the business could be rescued was if we could find a strategic equity partner. He then went out to find the partner.
"As of December last year, he was introduced to StarTimes and he has been in discussions with the company."
Mbalo said the consortium's proposal was only received on Friday.
"A meeting of creditors and shareholders will be held tomorrow. They are expected to discuss and vote on the plan that has been published. All of this is guided by the Companies Act," said Mbalo.
