Tiso Blackstar Group SE said it has signed a share purchase agreement with KTH and Kagiso Trust Strategic Investments Proprietary Limited to sell its stake in Kagiso Tiso Holdings to Kagiso Trust Strategic Investments Proprietary Limited.
The stake to be sold represents Tiso Blackstar Holdings’ entire shareholding of 213,235 ordinary shares in KTH constituting 22.9% of KTH’s issued ordinary share capital, held through its wholly owned subsidiary Tiso Blackstar Holdings SE.
Tiso Blackstar disclosed that the KTH purchase price, which is the same as previously announced, is ZAR1.5 billion (approximately £88 million) and will be paid over an 18 month period. As per the Company’s previous announcement, a portion of the proceeds will be applied to fully repay Tiso Blackstar’s term debt, which at 30 June 2017 was ZAR407 million (£24 million).
Tiso Blackstar also remains intent on paying a special dividend of ZAR40 million (£2.3 million). The remaining funds will be held to be reinvested into media-focused investments in accordance with Tiso Blackstar’s stated strategy. KTH is a leading black-owned diversified investment holding company with investments in a broad range of sectors including media, insurance and services.
As at 31 December 2016, the KTH investment was carried in Tiso Blackstar’s accounts at its estimated fair value less cost to sell of ZAR1.5 billion (then £78 million) and separately disclosed as a non-current asset held for sale. During the six months then ended, pre-tax dividends amounting to ZAR11 million (£0.6 million) were received from KTH.