Times Media Group has continued offloading assets it deems noncore, reaching an agreement to sell Exclusive Books and Van Schaik Bookstores to a consortium led by Medu Capital for a deal worth R435m.
Both companies were identified as being noncore to Times Media as they were not aligned to its strategic direction, it told shareholders on Thursday.
The deal consists of a purchase consideration of R325m for Van Schaik, a distribution of R25,7m from Van Schaik to Times Media (subject to cash balance of R10m remaining behind), and a purchase consideration of R90m for Exclusive Books (less a cash payment to Times Media of R5m).
Medu Capital is a professional investment management company specialising in private equity investments. It has R1,5bn under management, according to its website.
There will also be a cash payment to Times Media not exceeding 60% of the profit of Van Schaik between 1 July 2013 and the business day preceding the effective date of the transaction. In the case of Exclusive Books, and subject to there being a cash balance of R1 remaining in the company, Times Media will receive an amount not exceeding 45% of the profit of the business between 1 July 2013 and the effective date of the deal.
Times Media will use the proceeds of the transactions to reduce its gearing and for potential future acquisitions.
News of the transactions comes just six weeks after Times Media announced it was selling its news wire and financial information service, I-Net Bridge, to its rival, the Naspers-owned MacGregor BFA, pending approval by the competition authorities.
Earlier this week, the media group said it was buying a 32,3% stake in Ghana’s Multimedia Group for R144m. Multimedia Group is a radio and television business and is the largest independent media company in the West African nation. — (c) 2013 NewsCentral Media
