A SUB-committee of the board of New Africa Investments Limited (Nail) responsible for evaluating steps that could be taken to provide greater value to Nail's shareholders is to meet this week to look at the submission for the company and its assets.
The company's recent announcement that it was keen to sell its assets drew many suitors.
The deadline for submissions of expressions of interest was last Friday.
Nail's media assets include a share of radio advertising house Radmark; stakes in radio stations Jacaranda, KFM and Kaya FM; 100% ownership of Sowetan, and 50% of Sowetan Sunday World and New Africa Books.
The group also has interests in film, television and outdoor advertising.
Nail spokesman David Barritt said yesterday that no information on the bidding would be made available sooner as it would be a "lengthy process".
He said he had not yet been informed of how many bidders overall had shown interest in Nail.
However, it is believed that interest has come from many bidders, but the solid bids still remained the Primedia consortium and the Johnnic-CaxtonKagiso group.
An observer of events at Nail cautioned bidders that despite the fact that bids were called for by Nail, it did necessarily mean that the group or its assets would be sold.
The earlier announcement calling for bidders stated that while the process of procuring acquisition bids or offers was happening, a parallel process would take place whereby Nail's board would evaluate steps that could be taken to provide greater value to shareholders, rather than the acceptance of any offer received from a third party.
"This move of having a bidding process is meant to appease the shareholders and is a tactic by the board to buy time. Some people in the board are of the view that they don't have to sell. They will just entertain the offers and see how much interest there is in the market ," said an observer.
Nail's share price closed unchanged on Friday at 700c a share on the JSE Securities Exchange SA.
The share had gained 50c from 650c on Thursday ahead of Friday's deadline for submissions for Nail or its assets.
Jun 17 2003 07:02:26:000AM Patrick Wadula Business Day 1st Edition
Tuesday
17 June 2003
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