New Africa Investments Limited
(Registration number: 1993/02467/06)
("Nail" or "the Company")
Ordinary Shares
Alpha code: NAI
ISIN number: ZAE 000033338
N Ordinary Shares
Alpha code: NAN
ISIN number: ZAE 000033346
ANNOUNCEMENT REGARDING THE PROPOSED ACQUISITION OF KAGISO MEDIA LIMITED
("KAGISO MEDIA") BY NAIL
Shareholders are advised that the Company has been informed by the
Independent Communications Authority of South Africa ("ICASA") that it
has resolved not to grant the application for exemption under Section
49(6) of the Independent Broadcasting Authority Act ("the IBA Act").
Accordingly NAIL's acquisition of Kagiso Media will not proceed as
intended.
Nail was to acquire Kagiso Media for an amount of R377 million with
effect from 30 June 2001 ("the acquisition"). The acquisition would
have resulted in Nail being in a position where it was able to exercise
control over three commercial FM broadcasting licenses. Section 49 (2)
(a) of the IBA Act provides that no entity may be in a position to
exercise control over more than two commercial FM sound broadcasting
licences. Nail had applied to ICASA under Section 49(6), which provides
that ICASA may, on good cause shown and without departing from the
objects and principles of the IBA Act, grant an exemption to the above
limitation. Comprehensive reasons for the decision not to grant the
exemption will be published by ICASA in due course and Nail reserves
its rights in this regard.
Whilst the acquisition would have created within Nail a significant
empowerment media entity the loss of this opportunity will not weaken
Nail's positioning. Nail has in excess of R1 billion of cash and near
cash resources and will continue to actively pursue all available
opportunities where it believes it can deploy its cash resources to
create above average returns for shareholders. This could be both in
areas of media expansion and in non-media areas where Nail is able to
add value.
Sandton
2 January 2002
Sponsor Legal advisor to Nail
AFRICAN MERCHANT BANK Webber Wentzel Bowens
LIMITED
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