The Mvelaphanda Group announced a cash-and-share offer on Tuesday to buy media group Avusa, which publishes the Sunday Times and which owns cinema chain Nu Metro and retailer Exclusive Books.
The offer would be made through its wholly-owned subsidiary Richtrau No 229. Mvela currently owns 21,9% of Avusa, also through Richtrau.
The group is offering R24 per Avusa share — representing a 19% premium of its average share price over the past 30 days — or a share exchange. Avusa shareholders can choose to exit the investment, or can receive 1,478 Richtrau shares for every Avusa share they own.
Richtrau would then be unbundled from the Mvelaphanda Group and listed on the Johannesburg stock exchange. It would control all Avusa assets.
Mvelaphanda Group interim CEO Andrew Bonamour said at a media briefing the transaction formed part of the group’s value realisation and unbundling strategy.
It would also unlock value for Avusa shareholders. “Avusa has underperformed not only the market, but also its peers,” he said. “It’s been in the press for all the wrong reasons.”
Nevertheless, it owned several assets which would be difficult to replicate in an industry with high entry barriers. — Sapa