Jocelyn Newmarch
24 August 2009
Johannesburg — DIVERSIFIED media company Primedia CEO William Kirsh has resigned, Primedia said yesterday.
The Primedia board has appointed deputy CEO Kuben Pillay to succeed Kirs h from Tuesday next week. Pillay has been with the group for eight years.
Kirsh's resignation comes as a surprise for the media industry as the perception is that Primedia is a well-run group and he is seen as responsible for its dominance.
He will continue to be involved as nonexecutive deputy chairman and a significant shareholder along with his father, 702 Talk Radio founder Issie Kirsh.
Primedia, which owns lucrative assets such as 702 Talk Radio, Highveld Stereo, Kfm and a stake in KayaFM, is a key player in radio.
The group also has big outdoor advertising assets and owns cinema and gaming group Ster-Kinekor and a significant stake in soccer club Kaizer Chiefs.
Kirsh and the Mineworkers Investment Company (MIC) led a private equity consortium in a R6bn buyout of Primedia in 2007.
The group restructured its capital last November, with MIC becoming Primedia's largest shareholder with 49,6%.
According to market rumour, Kirsh quit in a palace coup, but a highly placed source at Primedia said he wanted to move of his own accord and do "different things".
A media industry expert said a change in Primedia's management structure was "on the cards for a couple of years".
"Primedia is a group that has always grown by acquisitions. That implies borrowings and debt that has to be serviced. It's okay in the fat years, but not so great in the seven lean years," the expert said.
Harry Herber, group MD of the Media Shop, said: "The ad industry is shrinking and media companies are under the hammer. Primedia have gone to market with a number of offers to increase volumes, and that's normal business practice given the market conditions."
Primedia's nonexecutive chairman and MIC CEO, Paul Nkuna, said: "He has contributed significantly not only to Primedia but also to the entire media industry in SA as well as facilitating black economic empowerment into this sector and making Primedia the leading black empowered media company in this industry.
"I am pleased he will continue to be able to contribute to the company, and look forward to working with him in his new capacity."
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