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Times Media set to delist from JSE

Johannesburg - Investment firm Blackstar is making an offer to acquire the issued ordinary share capital of Times Media Group [JSE:TMG] (TMG) and delist it from the Johannesburg Stock Exchange (JSE).

Times Media Group publishes the Sunday Times, the Business Day, Financial Mail, the Sowetan, The Times, Daily Dispatch and The Herald. It also owns the Times LIVE online network.

In addition, TMG has radio assets in Vuma FM and Rise FM. And in 2013, the group also purchased the remaining 50% of BDFM and then re-launched Summit TV as Business Day TV.

Another video play from TMG has been Vidi, a video-on-demand service that offers a Netflix-type service in SA.

In December last year, Times Media Group (TMG) announced that it appointed an independent board to consider an offer from investment company Blackstar [JSE:BCK].

And on Wednesday, TMG in a market update announced that “Blackstar has submitted a letter of firm intention to the board of directors of TMG ('TMG Board') to make the offer” to acquire the issued ordinary share capital of the media group.

“Blackstar and BCIL [Blackstar (Cyprus) Investors Limited] currently hold 19 149 590 and 21 927 192 TMG Shares, respectively, representing a combined interest of approximately 32.5% of the TMG Shares in issue, excluding the Treasury Shares,” read the announcement.

Times Media investors can choose to receive cash payouts of R22 per share or obtain 1.45 Blackstar shares for each TMG share. The announcement said the cash portion is to be limited to a maximum of R500m.

Times Media Group’s share price closed at R20.41 on Wednesday.

“The offer, if implemented, will result in TMG being delisted from the exchange operated by the JSE Limited,” read the announcement.

Investors owning more than 80% of TMG plan to support the transaction, according to the announcement.

These investors include the Public Investment Corporation (PIC), which owns 25.9% of TMG’s shares while the likes of Kagiso Asset Management Proprietary Limited holds 23.46%.

Furthermore, Blackstar entered into an agreement with Tiso Investment Holding in December to propose that Blackstar will acquire an equity interest of approximately 23% in Kagiso Tiso Holdings.

Kagiso Tiso Holdings is linked to Kagiso Media, whose interests range in radio stations such as Jacaranda, Gagasi, Kaya FM and East Coast Radio.

Blackstar’s move to acquire TMG with its share scheme plan has to undergo approval from competition authorities.

On its website, Blackstar describes itself as an investment company that "was incorporated in England and Wales and has its registered office and principal place of business in Malta". 

Blackstar is listed on both the Alternative Investment Market (AIM) of the London Stock Exchange and has a secondary listing on the AltX of the JSE in South Africa.

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