Kagiso Media (KGM) announced on Tuesday that it is to sell its 50% interest in the LexisNexis joint venture for R565 million to Reed Elsevier South Africa.
The company explained that the evolution of its strategy has led to a change in its investment criteria as it became apparent that a more proactive approach to managing its assets would enhance value creation in the longer term.
“In terms of this strategy, it was imperative that Kagiso Media assume majority control of the joint venture, however Kagiso Media's partner in the joint venture would not agree to Kagiso Media buying up. Kagiso Media's approach is on the back of a strategic decision to attain a 50+% shareholding in all its investments,” Kagiso Media said in a statement.
Reed Elsevier subsequently offered to purchase Kagiso Media's shares in LexisNexis.
Kagiso Media said it would apply the proceeds from the disposal to other key projects currently being pursued by the company.
LexisNexis is a provider of content-enabled workflow solutions for professionals in the legal, risk management, corporate, government, law enforcement, accounting and academic markets.
The disposal has been approved by the board of directors of Kagiso Media but remains subject to the fulfilment of suspensive conditions. These include finalisation and signature of the sale and purchase agreement, regulatory approvals, completion of a due diligence exercise, and Kagiso Media shareholder approval.
Kagiso Media shareholders were advised that the relevant cautionary announcement was now withdrawn and caution was no longer required to be exercised when dealing in their shares. - I-Net Bridge