Newspaper group Times Media has sold its electronic news wire and finance information service I-Net Bridge to rival McGregor BFA, which is owned by Naspers, for R115m.
“I-Net’s future prospects are dependent on being able to compete in a relatively small, proprietary market with major international players,” Times Media says in a statement to shareholders.
The company, it says, requires investment and a global presence to “help retain a competitive offering and improve its prospects for sustainable growth”. It says McGregor BFA is “better placed” to help it achieve this.
The R115m offer price will increase by up to a further R10m in the event, in the next 12 months, of I-Net recovering 10% or more of net income lost due to changes made in June to shareholding data provided by the JSE’s Strate service.
Times Media says the proceeds of the sale will be used to reduce debt and for potential future acquisitions that are more closely aligned to its core business.
The deal is still subject to approval by the competition authorities. — (c) 2013 NewsCentral Media
