South African firm Times Media picks up 49pct stake in Radio Africa in $18.6M deal
South African media firm Times Media Group (TMG) has acquired a 49% holding in Kenyan broadcasting firm Radio Africa Ltd. The transaction is valued at $18.62 million (ZAR1.58 billion), according to Capital FM.
Radio Africa Managing Director Patrick Quarcoo saiid of the deal: "It will be good for the company, for the staff and for the shareholders. In our view it is a win-win-win deal. No staff or managers will be laid off as a result of the deal. We will continue to run the business as before. The only difference will be that we will be much stronger financially."
Radio Africa will use part of the proceeds for recapitalization to eliminate its debts. Another portion will be used fot the company's new investments. The stake purchase serves as a stepping stone for the strengthening of both company's standing in the media industry. The deal will beef up TMG's skills in electronic media and newspaper publishing in South Africa, the report detailed.
Kiss FM, Radio Jambo, and Classic FM are among the radio stations under Radio Africa. TMG, on the other hand, owns newspaper titles Business Day, Sowetan, and the Sunday Times, Capital FM reported.