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Cape Town - African Media Entertainment (AME) has made an offer to buy Moneyweb for between R27.5m and R30m and plans to delist it from the JSE on August 7 2017.
AME and Moneyweb said in a statement after markets closed on Tuesday that on May 5 2017 AME made an offer to acquire all of the issued ordinary shares of the company, excluding 1 000 000 ordinary shares already held by AME and 1 197 196 treasury shares held by Moneyweb.
They said the cash-based offer will be priced at R0.26 per Moneyweb share while the offer to be settled in AME shares will be priced at R0.28 per Moneyweb share. This comes to between R27.5m and R30m for the sale of the shares. Moneyweb last traded at R0.17, making the offer a 53% premium.
AME operates in the radio sector with stations like Algoa FM, OFM and Radio Heads. “AME has decided to expand its sphere of operations within the media space,” they said.
The deal will result in Moneyweb, which is 50.7% owned by Caxton, having a single shareholder “who will have a vested interest in its growth and development”, the statement explained.
It also provides Moneyweb shareholders with an opportunity to benefit from AME's relatively higher market rating and to participate in a more liquid share, they said.
