Times Media Group is selling its controlling 51% stake in MAP Integration Technologies (MapIT) to TomTom Africa for R37,5m, the media and entertainment group said on Friday.
TomTom already held 49% of MapIT’s equity.
Times Media, which publishes newspapers such as the Sunday Times and Business Day, holds the stake in MapIT through its wholly owned subsidiary New Holland Publishing.
The decision to sell MapIT forms part of Times Media’s turnaround strategy, in terms of which the company, formerly known as Avusa, is exiting businesses it deems noncore.
MapIT provides navigation data and related mapping services to device suppliers. The company is “not aligned to Times Media Group’s core businesses, being media and retail solutions”.
TomTom will pay cash for the 51% stake in MapIT. “The process of the disposal will be used to reduce acquisition leverage with respect to future acquisitions more aligned to Times Media Group’s core business.”
MapIT paid a dividend to its shareholders of R11m prior to the sale to TomTom, of which R5,6m was payable to Times Media. — (c) 2013 NewsCentral Media