Black owned and managed investment holding company, Kagiso Tiso Holdings (“KTH”), made an announcement on Tuesday of its Firm Intention to purchase the remaining shares in Kagiso Media Limited (“KML”) that it does not already own. KTH currently owns 51.1% of KML.
KTH has strong roots in the South African investment landscape and was created through a merger between Kagiso Trust Investments and Tiso Group in July 2011. This combination represented a significant transformation milestone in corporate South Africa. The company has a net asset value of approximately R9bn and in addition to media, also has exposure to other key sectors in the economy ranging from power, insurance and financial services to health.
Once approved, the KML buy-out will become a significant milestone for transformation on the South African landscape.
Through this transaction KTH is offering minority shareholders a cum dividend cash consideration of R28.50 per share, which represents a 34.5% premium to the 30day VWAP prior to KML’s cautionary announcement on 10 June 2013. Shareholders of KML will be voting on the transaction at a special general meeting to be held within 60 days of this announcement. The deal will be subject to regulatory approvals.
Vuyisa Nkonyeni, CEO of KTH says, “KML has always been a key investment and we aim to build on its success. This transaction forms part of the broader KTH investment strategy and also contributes positively to the transformation of a key sector of the economy.”
Subsequent to attaining shareholder and regulatory approvals, KTH plans to delist KML from the JSE Limited. KTH regards the transaction as an opportunity to align the KML strategy with that of KTH.
[Issued by: Kagiso Tiso Holdings]