Johannesburg - Shares in Kagiso Media shed about 4 percent to close at R10.60 yesterday after the group announced that it had acquired 100 percent of the share capital of Little Swift Investments 36 from Tiso Private Equity Fund, giving it access to a further 20 percent stake in Jacaranda. The stake is worth R125 million.
The deal is subject to approval by the Independent Communications Authority of SA. It will increase Kagiso's stake in Jacaranda to 80 percent.
In the six months to December, Kagiso's broadcasting assets increased revenue by 13 percent to R187.5 million.
Kagiso competitor Primedia announced that the competition commission had approved its acquisition of the remaining 14 percent of 94.7 Highveld Stereo from the Mineworkers Investment Company (MIC), its empowerment partner.
But unlike its competitor, Primedia's shares gained about 2 percent to close at R17.40. The media sector rose 2.41 percent.
Primedia will pay MIC R11.5 million in cash and will issue 6 million N shares.
The issuing would raise MIC's stake in Primedia from 16.1 percent to 18.2 percent, making MIC Primedia's largest shareholder, Primedia said.
Primedia's revenue from the advertising division, which includes Talk Radio 702 and Highveld, increased 25 percent to R587 million for the six months to December.
Primedia and Kagiso Media are at loggerheads over a non-controlling stake in Kaya FM. According to media reports, Primedia opposed a change in Kaya's shareholder as it had made a bid to acquire the entire issued capital of New Africa Investments, which holds 24.9 percent of Kaya.