Radio group makes offer to buy Moneyweb for about R30m

(iStock)
(iStock)

Cape Town - African Media Entertainment (AME) has made an offer to buy Moneyweb for between R27.5m and R30m and plans to delist it from the JSE on August 7 2017.

AME and Moneyweb said in a statement after markets closed on Tuesday that on May 5 2017 AME made an offer to acquire all of the issued ordinary shares of the company, excluding 1 000 000 ordinary shares already held by AME and 1 197 196 treasury shares held by Moneyweb.

They said the cash-based offer will be priced at R0.26 per Moneyweb share while the offer to be settled in AME shares will be priced at R0.28 per Moneyweb share. This comes to between R27.5m and R30m for the sale of the shares. Moneyweb last traded at R0.17, making the offer a 53% premium.

AME operates in the radio sector with stations like Algoa FM, OFM and Radio Heads. “AME has decided to expand its sphere of operations within the media space,” they said.

The deal will result in Moneyweb, which is 50.7% owned by Caxton, having a single shareholder “who will have a vested interest in its growth and development”, the statement explained.

It also provides Moneyweb shareholders with an opportunity to benefit from AME's relatively higher market rating and to participate in a more liquid share, they said.

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
USD/ZAR
14.05
0.0%
GBP/ZAR
19.67
0.0%
EUR/ZAR
17.10
0.0%
AUD/ZAR
11.03
0.0%
JPY/ZAR
0.13
0.0%
Gold
1,831.32
0.0%
Silver
27.45
0.0%
Palladium
2,929.64
0.0%
Platinum
1,256.50
0.0%
Brent Crude
68.28
+0.3%
Top 40
62,573
+1.4%
All Share
68,520
+1.4%
Resource 10
71,474
+2.1%
Industrial 25
86,856
+0.9%
Financial 15
12,711
+1.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1387 votes
No, I did not.
52% - 3463 votes
My landlord refused
27% - 1837 votes
Vote