Caxton’s bid to halt Media24/Novus merger dismissed

accreditation

Johannesburg – The Competition Tribunal has rejected publishing house Caxton’s application to stop the Media24 merger with printing group Novus Holdings [JSE:NVS].

According to a statement issued by the Tribunal on Thursday, Caxton wanted clarity on the control structure relating to the merger. The Tribunal dismissed the application on this basis, indicating that that the control structure was not relevant to the proposed transaction in light of a condition attached to a de-merger.

The condition was recommended by the Competition Commission. In the case of a de-merger Media24 would divest its majority shareholding in Novus to parent company Naspers, and maintain a 19% non-controlling stake of Novus.

READ: Commission recommends Media24 divest majority stake in Novus

“In terms of this condition Media24 will sell down its existing stake in Novus to a level at which Media24 will no longer exercise control over Novus,” said the Tribunal.

Media24 previously said that it remains committed to its print media operations, despite the proposed unbundling. “Print media is and will remain a core part of Media24’s portfolio. We are excited about the future of Media24, and the conclusion of this process enables us to focus on our objective of enriching the lives of our consumers through our strong portfolio of digital and print media products, efashion, ecommerce services and online job classifieds.”

READ: Caxton wants answers from Koos Bekker on Media24-Novus merger

A merger between Media24, Novus Holdings - formerly Paarl Media Group, and Natal Witness was approved by the Competition Tribunal as far back as 2012, despite submissions by the Commission and Caxton.

In February 2015 Media24 announced intentions to list Novus on the Johannesburg Stock Exchange. The Competition Tribunal later dismissed an appeal to stop the listing in March 2015, Fin24 reported.

A restated management agreement which led to the listing indicated a change in control at Novus, the Competition Appeal Court ruled in November 2015. Subsequently Media24 was required to notify the competition authorities of the transaction by way of a merger filing, which was filed to the Commission in February 2016.

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

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
14.84
-0.4%
Rand - Pound
20.34
-0.4%
Rand - Euro
17.38
-0.5%
Rand - Aus dollar
10.73
-0.3%
Rand - Yen
0.14
-0.7%
Gold
1,746.50
-0.5%
Silver
22.15
-1.2%
Palladium
1,944.52
-3.7%
Platinum
918.64
-2.7%
Brent Crude
75.34
-0.4%
Top 40
56,605
0.0%
All Share
62,864
0.0%
Resource 10
56,497
0.0%
Industrial 25
81,170
0.0%
Financial 15
14,018
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
What potential restrictions on unvaccinated South Africans may make the biggest difference to public health, the economy?
Please select an option Oops! Something went wrong, please try again later.
Results
Limited access to restaurants and bars
9% - 44 votes
Limited access to shopping centres
17% - 85 votes
Limited access to live events, including sport matches and festivals
28% - 140 votes
Workplace vaccine mandates
46% - 231 votes
Vote