Jocelyn Newmarch
17 November 2008
Johannesburg — THE Mineworkers Investment Corporation (MIC) now owns nearly 50% of one of SA's biggest media groups, having steadily increased control over Primedia for the past few years.
Last week, Primedia announced MIC had increased its stake from 32% to almost 50%.
MIC's portion of the deal is worth R246m.
Primedia was delisted in September last year after MIC led a consortium including private equity company Brait and Primedia management to buy out the company for R6bn.
Kuben Pillay, Primedia's acting CEO, said the opportunity for MIC to increase its stake arose earlier this year when the increased cost of debt financing meant shareholders would have to increase their capital.
This in turn gave rise to the opportunity for MIC to increase its stake.
Brait still holds 19% of the company, with the Kirsh family consortium - Primedia's original founders - holding "about" 25%, according to Pillay.
The remaining shares are held by management.
"If we did not believe in Primedia's performance, we would not have increased our stake," said Paul Nkuna, CEO of MIC.
"We believe there is a future for media, it will evolve and a lot of things will come into play. Primedia is geared to cope with the things that come into play.
"It has enough depth of leadership to take it to the next level," Nkuna said.
Asked whether MIC would be interested in further increasing its stake, Nkuna said "I think our stake is large enough.
"We like having partners in our investments. It's good to have people who can balance your thinking. "
MIC had shifted from being "providers of empowerment partners to being true owners who are in control of the destiny of their companies", he said.
MIC has been involved with Primedia for some years now, having first bought into the group in 2000.
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