Caxton sold about R100m of shares in Times Media Group (TMG) between June and December last year, it was reported on Tuesday.
According to Business Day, Caxton bought a significant stake in TMG from Mvelaphanda last January, when TMG was trading at less than R14. It traded between R18,60 and R21 from the end of June to December. On Monday a TMG share cost R19,90.
The newspaper reported that while Caxton held about 14,7m shares (an 11,6% stake) in TMG at the end of June, it owned 9,5m shares (just over 7%) by the end of December.
Caxton also in effect blocked a TMG bid to buy Ramsay Media, which publishes magazines, including Getaway and Car.
TMG had reportedly planned to acquire Ramsay Media to try and draw synergies with its own motoring platform, which includes Ignition.
However, Caxton, which was a 30% shareholder in Ramsay Media, exercised its pre-emptive rights to buy the Ramsay family’s remaining 70% stake.
Business Day reported that there were concerns that, as a result, TMG might reduce the print work it procured from Caxton, and redirect this to its competitor Paarl Media.
The newspaper reported that talk in the market was that Caxton intended to expand its digital platform. — Sapa