Oakbay Investments announces the sale of its shareholdings in Infinity Media and TNA Media to Lodidox and Management for R450 million
Oakbay Investments announces it has reached agreement with Lodidox and Management for the sale Of its shareholdings in its two media businesses, Infinity Media and TNA, for a combined consideration of R450 million. The transaction comprises:
The sale of Oakbays shareholding in Infinity Media, which operates the ANN7 News Channel, for R300 million: and
The sale of Oakbays two-thirds stake in TNA Media, the publisher of The New Age newspaper, for R150 million.
The agreement is expected to be concluded over the next few weeks, subject to any regulatory requirements.
The sale is part Of Oakbays commitment to preserve jobs and provide certainty to over 7500 hard-working employees throughout the group and to safeguard the inherent value of the businesses in which they work.
Under a new majority shareholder, Oakbay believes that both businesses and their employees will have the bright and prosperous future they deserve. The sale will also allow the shareholder the time to focus on clearing its name in the face of unfounded media allegations.
Commenting on the agreement. Ronica Ragavan, Acting Chief Executive of Oakbay, said: We are delighted to have reached an agreement with Lodidox and the management team; the sale of our shareholdings will Secure the future Of these businesses and help preserve Of their employees. Both businesses are inherently sound and well positioned for growth in their respective market segments. We wish them every success in the future.-
Commenting on the agreement, Lodidox owner, Mzwanele Manyi said:
"I am delighted to have reached agreement with Oakbay and 100k forward to successfully completing the deal. These are two strong businesses which are full of potential and, under the right external circumstances, can become an increasingly important and relevant part of the South African media landscape. In addition, I am particularly impressed that the shareholders of Oakbay have agreed to do a vendor financing at acceptable terms as part of their commitment to transformation and to expedite the transaction."
Statement issued by Oakbay Investments, 21 August 2017