Primedia Breaks New Ground For Empowerment In The Media Sector
Press Release
Primedia Limited
(Incorporated in the Republic of South Africa)
(Registration number 1993/003355/06)
Share code: PMA ISIN: ZAE000035119
Share code: PMN ISIN: ZAE000035127
(`Primedia` or `the company`)
PRIMEDIA BREAKS NEW GROUND FOR EMPOWERMENT IN THE MEDIA SECTOR
Primedia today announced the first step in a new BEE transaction whereby the
economic value of the stake held by BEE shareholder, the Mineworkers Investment
Company (`MIC`), will increase from approximately 6.7% to approximately 20.0%.
In the first stage, MIC will purchase 15 million Primedia `N` shares from Active
Value Fund Managers (`Active Value`) at 13.75 per share, `cum` the final
distribution to be made by Primedia on or about Monday, 31 October 2005.
The company stated that the acquisition is the first stage of a larger BEE
transaction which will be subject to certain shareholder approvals, informing
the market that more details would be made available in due course. Assuming
shareholder approval is secured for the total transaction, MIC`s resultant stake
in Primedia would be worth R640 million at current market prices, making it the
largest BEE transaction in the media sector to date.
William Kirsh, CEO of Primedia, commented: `This is another positive development
for empowerment at Primedia, which will also significantly strengthen the
group`s strategic profile. Primedia has actively facilitated many opportunities
to strengthen MIC`s shareholding in Primedia and we are very gratified to see
the results of all our efforts since 1996 being manifest in this most recent
transaction. With MIC`s economic interest increasing to 20%, we will be well on
our way to fulfilling our charter requirements, further underlining Primedia`s
position as the leader of our sector in black economic empowerment.`
Commenting on the proposed share acquisition, Keshan Pillay, Executive Director
of MIC, said: `MIC`s intent to acquire another significant tranche of shares in
Primedia, through an outright purchase of shares from Active Value, is a
reflection of our confidence in the strategic direction and prospects for the
group. Great progress has been made with transformation at Primedia and the
proposed share acquisition will more closely align MIC`s economic interest with
its voting rights.`
Julian Treger, Chief Executive, Active Value Advisers, said: `We are very
pleased to be facilitating this transaction to further enhance empowerment at
Primedia. We remain a significant shareholder in the group and anticipate that
the strong performance of the group over the past few years is set to continue.`
Today`s announcement updates a cautionary announcement published by Primedia on
the Stock Exchange News Service on 17 August 2005, wherein share shareholders
were advised that the company had entered into negotiations regarding the
potential increase of the Black Economic Empowerment `N` shareholding in
Primedia.
The anticipated share acquisition by MIC is subject to certain shareholder
approvals and conditions precedent and therefore the group extended its advice
to shareholders to exercise caution when dealing in their Primedia securities
until a further detailed announcement is made.
12 September 2005
Contact:
William Kirsh CEO, Primedia 011 506 3000
Rob Pinker Brunswick 011 268 5750/083 326 7794
Gareth Sharp Brunswick 011 268 5750/083 287 3180
Date: 12/09/2005 01:44:48 PM
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