A consortium led by businessmen Given Mkhari and Malose Kekana has made an unsolicited offer to buy a stake in struggling pay-television operator TopTV, website BDlive reported on Monday.
TopTV is owned by On Digital Media, which is currently trading under a “business rescue” in terms of the Companies Act. TopTV was launched three years ago as the first satellite-based pay-TV alternative to DStv, which is owned by Naspers subsidiary MultiChoice.
The bid comes following news that China’s StarTimes was in talks to buy a stake in the struggling broadcaster. However, under South Africa’s constitution, StarTimes would be restricted from buying more than 20% of TopTV. The Mkhari-Kekana consortium would have no such restriction.
According to the BDlive report, business rescue practitioner Peter van den Steen has confirmed that he had received an offer and will inform TopTV’s shareholders at a meeting scheduled for Tuesday this week. The website says the consortium has offered R400m for TopTV, though MSG has denied this, saying the number is lower.
TopTV, meanwhile, says Van den Steen has “no obligation” to announce at Tuesday’s meeting that additional, unsolicited bids have been received. It says one additional bid has been received, in addition to the one put forward by the MSG consortium. These bids “cannot be viewed as plans under the current circumstances”.
If the deal goes ahead, Mkhari, who controls media group MSG Afrika, will extend his growing influence in South Africa’s media industry. MSG Afrika owns the popular Capricorn FM radio station in Polokwane in Limpopo and will soon launch Power 98.9 FM, a new talk radio channel in Gauteng that will compete directly with Talk Radio 702 and Kaya FM.
Kekana founded asset management business Progidy Capital and is a former CEO of the Umsobomvu Youth Fund. — (c) 2013 NewsCentral Media
- TechCentral will bring readers an interview with MSG Afrika chief investment officer Andile Khumalo later on Monday
