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Johncom to spin off media assets

JOHANNESBURG, SOUTH AFRICA Apr 11 2007 09:42

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South Africa's second-biggest media company Johnnic Communications (Johncom) will spin off and separately list its media and entertainment assets, the group said on Wednesday.

Johncom, owner of financial daily Business Day and South Africa's biggest Sunday newspaper, the Sunday Times, said in a statement the new firm, named OpCo, will be unbundled to shareholders and listed on the JSE.

"This restructuring follows the completion by the Johncom board of a strategic review of its businesses and operations. It will enable OpCo to apply greater focus to growing the group's integrated media and entertainment assets and facilitate the introduction of broad-based BEE (black economic empowerment) ownership in the core business, thereby building further shareholder value," Johncom CEO Prakash Desai said in a statement.

The new firm's creation, unbundling and listing is expected to follow the sale of Johncom's stake in pay-TV channels M-Net and Supersport to Africa's biggest media group, Naspers, for about R3,15-billion, for which approval from competition authorities is pending.

OpCo will implement a black economic empowerment (BEE) transaction soon after the listing.

After the unbundling, Johncom's sole remaining asset will be a 37,79% stake in media group Caxton.

The JSE has granted Johncom a year from the date on which OpCo's unbundling becomes unconditional to comply with bourse regulations that a listed firm must have control over the majority of its assets.

Desai said Johncom will consider various options during this period.

Johncom shares closed 2,28% higher at R91 on Tuesday. - Reuters

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Johncom to spin off media assets

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