Media24, a Naspers Limited company will divesting its majority stake in Novus Holdings.
The decision was announced by Naspers as one of the requirement given to Novus Media Holdings and Media24 as a condition to granting their proposed merger.
Naspers referred its shareholders to “The announcement released by Novus Holdings Limited (“Novus”) on SENS on 26 November 2015 in terms of which Novus shareholders were advised that the Competition Appeal Court on 25 November 2015 upheld an appeal by Caxton and CTP Publishers and Printers Limited (“the Appeal”).
“In terms of the Appeal, Media24 was required to notify the Competition Authorities of a change of control, which arose from the implementation of the restated management agreement dated 23 February 2015 (“Merger Filing”). The Merger Filing was filed with the Competition Commission in February 2016”.
“The Competition Commission has decided to recommend the Merger Filing for approval to the Competition Tribunal subject to the condition that Media24 divest itself of the majority of its shareholding in Novus; permitting Media24 to retain a non-controlling minority stake in Novus of 19% (“Merger Condition”)”.
Naspers said “The Merger Condition, including the proposed 19%, remains subject to the final approval of the Competition
Tribunal. If the Competition Tribunal approves the Merger Condition, Media24 will unbundle the majority of its shareholding in Novus to the Shareholders of Naspers, its ultimate holding company (“Unbundling”). The Unbundling will be implemented as soon as reasonably possible after the approval date”.
Media24 is a publishing outfit with online and print property across Africa.