Johncom gears up for African dominance
February 10, 2004
By Gugulakhe Masango
Johannesburg - The integrated strategy of Johnnic Communications (Johncom), aimed at making the group a dominant player in Africa, could materialise sooner than expected after the group was asked to provide specialised media expertise and services to ailing daily and weekly publications in west Africa.
Prakash Desai, the financial director of Johncom, said this week: "We have been asked by the owners of two titles, one in Nigeria and the other in Ghana, to help with the redevelopment of their publications."
Desai would not name the ailing titles, but said: "This is part of our strategy to examine opportunities on the continent.
"We have been looking for opportunities in west Africa but have not acquired a stake in any newspaper or a company."
Desai said the company would take an equity stake in certain media companies should an opportunity to do so become available.
He said Johncom would also assess opportunities in the privatisation process, but failed to provide details.
It has already opened a four-screen cinema in Nairobi and expanded its Exclusive Books store network to 32, by opening a new store in Botswana.
Johncom was also looking at opening a CD manufacturing plant in Nigeria.
Brian Pottinger, the chief executive of Johncom's Africa division, said the firm would appoint a media project manager to devise strategic and marketing plans for the west African business.
He said the new manager would pursue synergies between the local operations of Johncom and those of west Africa.
"This is a follow-up on trying to get resources into place, should an acquisition be made in that region. We have to raise resources internally or externally."
The new manager would help Johncom set up remote site printing opportunities and effective distribution methods in that region.
Johncom is part of a local consortium that consists of Kagiso Media and Caxton. The consortium is understood to have acquired Sowetan newspaper after failing to buy the assets of New Africa Investments.
Johncom shares closed unchanged at R25.99 yesterday.
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