Nail to make more dividend payments to shareholder
Nail to make more dividend payments to shareholders
October 21, 2004
By Gugulakhe Masango
Johannesburg - Shareholders of New Africa Investments Limited (Nail) should expect more dividend payments with the conclusion of the disposal of the group`s interest in radio station Kfm for more than R200 million.
Two months ago, Nail paid a special dividend of R1.12 a share to shareholders and promised them another windfall.
Kenny Setzin, Nail`s executive director, said yesterday that the process of disposing the company`s assets had unlocked substantial shareholder value.
`We will be making further distribution to shareholders,` he said. `We are still in discussion with the board about the best possible way to distribute cash.`
He added that the distribution of cash would definitely happen sooner than expected.
Kfm radio`s 66.5 percent issued share capital was acquired by media and entertainment group Primedia, after getting regulatory and competition commission approval to buy 100 percent of New Africa Media Holdings for R209 million.
Setzin said shareholders who decided to remain investors in the group had benefited and would continue to gain from the process of selling the assets.
Still for sale are the stakes in radio station Kaya FM, car rental business Hertz and a small interest in a film company.
Setzin said: `We are obviously talking to potential buyers interested in acquiring the three remaining assets.`
The group shareholders are still expected to formulate its strategy going forward after selling the three remaining assets.
Nail is now controlled by the Tiso-led consortium consisting of Tiso Group, Safika Holdings, Newshelf 730, Capricorn Capital Partners (which is related to Hollard), Investec Bank and Multidirect Investments .
Nail stock was unchanged at R1.50. The media and entertainment sector fell 0.01 percent.
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