Times Media Group has acquired a controlling 60% stake in a KwaZulu-Natal based radio station called Vuma FM. The acquisition comes just a month after it snapped up 65% of Mpumalanga station Mpower FM.
The deal is worth R25,6m and Times Media has agreed to provide additional working capital to Vuma until breakeven is achieved, which is expected within the next 18 months.
Vuma FM is a commercial station based in Umhlanga, north of Durban. It was launched in November 2012, broadcasting gospel and inspirational content to Zulu-speaking audiences to the main centres in the province.
“The station has experienced good growth since its launch and Times Media Group believes there is significant further potential for growth with the added resources of the group,” the company says in a statement on the JSE’s news service.
“Following the recent acquisition of an interest in Multimedia Ghana, and the purchase of Mpower FM in Mpumalanga, Times Media Group identified Vuma as an opportunity to add a valuable new asset to its growing portfolio. Vuma broadcasts in one of the major economic provinces of South Africa, and is at an early stage in its development.”
The company says that the gospel and inspirational format is highly successful in both radio and television in South Africa and elsewhere. It intends to support the station’s commercialisation with an advertising sales-led approach using its national sales team. It will also provide additional management and programming resources.
“Times Media Group also has extensive experience in the inspirational format through its ownership of Gallo Record Company,” it says. “Gallo is rich in terms of content and history and has over 200 000 songs on master tape. It is home to some of the biggest names in gospel music and will support the growth of Vuma through its catalogue and industry expertise.”
Times Media is best known for its newspaper assets, which include the Sunday Times and Business Day. It has been selling businesses it deems noncore. Recent disposals have included Nu Metro and Exclusive Books. — (c) 2014 NewsCentral Media
