| Thu 11 Oct 2007, 8:51 | | MNY - Moneyweb - BBBEE consortium acquires 25 1% o |
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MNY
MNY
MNY - Moneyweb - BBBEE consortium acquires 25,1% of Moneyweb
MONEYWEB HOLDINGS LIMITED
(Registration No:1998/025067/06)
Share code: MNY & ISIN: ZAE000025409
("Moneyweb" or "the Company")
BBBEE CONSORTIUM ACQUIRES 25,1% OF MONEYWEB
AltX-listed business and financial media company Moneyweb Holdings has
introduced a broad based black empowerment partner.
Isingqi Investment Holdings has acquired 25,1% of Moneyweb`s equity. The
transaction is being financed by black-owned group Mvelaphanda Holdings.
Isingqi, which last month acquired 5% of Moneyweb`s equity through the open
market, will acquire the bulk of its stake through the issue of 11,8m new shares
by Moneyweb at a price of 70c.
The new shares are equivalent to 15% of the equity, the maximum which the
company`s directors are allowed to issue in terms of the authority voted by
shareholders.
The final 3,8m Moneyweb shares needed to take Isingqi to the required 25,1%
level will be sold, in equal portions, by the company`s controlling shareholders
Alec and Louise Hogg, also at 70c a share.
After the transaction, Moneyweb will have 78m shares in issue with the new
shares injecting R8,26m into the company`s cash resources.
Isingqi`s Lindikhaya Sipoyo will join the Moneyweb board of directors.
Moneyweb CEO and founder Alec Hogg said: "We have had many invitations over the
years, but approached the idea of introducing an empowerment partner with
considerable caution. Our patience has helped us avoid mistakes made by some BEE
pioneers.
"This transaction, we believe, is simply perfect - a broad-based consortium
backed by a black group which has given notice it is serious about media; plus a
cash injection through the issue of new shares priced at a price where existing
shareholders are not prejudiced.
"After agreeing to top up the Isingqi holding by selling 1,9m shares each,
Louise and I will still hold 49,5% of the equity of the company. Many believe
having a strong controlling shareholder is a major advantage in the media
industry where disproportionate benefit often accrues from decisions made with
the long term impact in mind.
"As important for the company`s ethos, Isingqi and its funder Mvela appreciate
that although valuable financial partners, they will have no involvement in
editorial policy. Indeed, they believe Moneyweb`s greatest strength is its
independent content. The consortium has also contractually agreed to retain its
shares for a minimum of three years."
Hogg says debt-free Moneyweb will now have over R10m in unencumbered cash - and
access to considerably more if required: "We already have big plans. Now as an
empowered company, a new window of opportunity opens to us. For the first time
we can seriously consider applying for broadcasting or online betting licences."
Mvela Holdings chief executive Mark Willcox, said: "We are delighted to be
involved with Moneyweb. Its future prospects are excellent; the business is well
run; and as one of the few survivors from the Dot Com boom of the late 1990s,
its management has been through the fire."
Willcox said Mvela is looking for further acquisitions in the media sector. It
expects to make further announcements in this regard in the near future.
ends
About Moneyweb
Listed on the Alternative Exchange of the JSE, the company was founded in 1998.
It owns the market leading online business and investment news website
moneyweb.co.za; the London-based global resources news leader mineweb.com and a
number of smaller websites run as joint venture partnerships.
The company pioneered business radio in South Africa and during prime time on
weeknights produces the nationally broadcast Moneyweb Power Hour (Radio 2000)
and Geldsake met Moneyweb (RSG) in partnership with the SABC.
Moneyweb also has partnerships in television with CNBC Africa (Power Lunch with
Moneyweb); and in print with Caxton and Naspers by providing the content for
the business sections of The Citizen and Weekend Witness newspapers.
For further information please contact:
Alec Hogg, Moneyweb, 011 327 1277
Date: 11/10/2007 08:51:26 Produced by the JSE SENS Department.
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