Chinese firms get 20% stake in Independent

The Competition Commission has approved the dilution of the shareholding of the Sekunjalo Independent Media consortium, the purchaser of Independent Newspapers, in favour of two Chinese firms. It said the approval, made on August 7, would reduce the consortium’s interest from 75 percent to 55 percent. The 20 percent will go to a new entity to be incorporated in Mauritius called Interacom Investment Holdings. Its shareholders are China International Television and the China Africa Development Fund. The Government Employees Pension Fund, through the Public Investment Corporation (PIC), is still a 25 percent shareholder as set out in the original deal. The commission said the PIC was not acquiring control of Independent Newspapers as envisaged in the Competition Act. The final transfer, arising from the R2 billion sale by the Dublin-based Independent News & Media, was expected to take place yesterday. – Wiseman Khuzwayo