Controversial Gupta-aligned businessman Mzwanele Manyi is buying the Gupta-owned ANN7 and The New Age for R450m, it was revealed on Monday.
A Manyi-owned company called Lodidox is buying Infinity Media, which owns ANN7, for R300m and two-thirds of TNA Media, which owns The New Age, for R150m, Gupta-owned Oakbay Investments said in a statement.
“The agreement is expected to be concluded over the next few weeks, subject to any regulatory requirements,” Oakbay said.
The sale comes as Oakbay struggles to find a banker willing to do business with it. Bank of Baroda has become the latest institution unwilling to provide banking services to the controversial Gupta family’s businesses.
The acquisition of the media assets is being done through a Manyi-controlled company called Lodidox.
A LexisNexus search shows that Lodidox was registered in February 2012 and has Manyi as its sole director.
“We are delighted to have reached an agreement with Lodidox and the management team. The sale of our shareholdings will secure the future of these businesses and help preserve the jobs of their employees,” said Oakbay acting CEO Ronica Ragavan in the statement.
“Both businesses are inherently sound and well positioned for growth in their respective market segments. We wish them every success in the future.”
In the statement, Manyi said: “I am particularly impressed that the shareholders of Oakbay have agreed to do a vendor financing at acceptable terms as part of their commitment to transformation and to expedite the transaction.”
Oakbay has not provided further details about the vendor financing arrangement. — (c) 2017 NewsCentral Media