Caxton wants answers from Koos Bekker on Media24-Novus merger

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The Cape Town Central City Improvement District noted Media24's revamped building, adding value to the CBD property value.
The Cape Town Central City Improvement District noted Media24's revamped building, adding value to the CBD property value.

Cape Town - Caxton wants Naspers chairperson Koos Bekker to provide evidence on the control structure involved relating to a merger whereby Media24 intends to acquire Novus.

The Competition Tribunal said in a statement on Tuesday that it will hear an application on Wednesday from Caxton and CTP Publishers to intervene in a merger hearing.

Since Media24 does not wish to acquire or retain sole control over Novus, the Competition Commission recommended that the Competition Tribunal approve the proposed merger subject to a divestiture condition.

It recommended that Media24 divest its majority shareholding of Novus to Naspers shareholders and retain a non-controlling 19% stake in the company.

Caxton said it has a material and substantial interest in the matter, according to the Tribunal.    

"It submits among other things that Naspers chairperson Koos Bekker be called to provide evidence on control structure involved. It also wishes to intervene on the impact of the exclusive contracts between Media24 and Novus and its effect on the printing market in SA."

Media24 told Fin24 that it can't comment on the matter. "The matter is currently the subject of legal proceedings before the Competition Tribunal and we cannot comment."

Novus is controlled by Media24 and is a commercial printing operation with services including printing solutions for newspapers and magazines. Novus controls several firms including Paarl Media Holdings, Paarl Media and Print Media Paarl.

Listing of Novus on JSE

In February 2015, Media24 announced its intention to list Novus on the Johannesburg Stock Exchange.

An urgent application which sought to stop the listing was dismissed by the Competition Tribunal on 23 March 2015. An appeal was lodged against the Competition Tribunal’s ruling.

On 25 November 2015 the Competition Appeal Court ruled that the implementation of the restated management agreement leading up to the listing gave rise to a change in control over Novus.

The Competition Appeal Court required that Media24 notify the competition authorities of the transaction by way of a merger filing. The merger was filed with the Competition Commission in February 2016.  

A merger between Media24, Novus Holdings - formerly Paarl Media Group - and the Natal Witness was approved by the Competition Tribunal in 2012.

Prior to the merger, the Competition Commission and Caxton publishers and printers had provided submissions on potential competition and public interest concerns with the merger.

*Fin24 is part of 24.com, a subsidiary of Media24

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