Johannesburg - The Competition Commission yesterday gave the go-ahead for the Tiso-led consortium to acquire the assets of the media group, New Africa Investments Limited (Nail), and sell them to interested suitors but the industry regulator, the Independent Communications Authority of SA (Icasa), could throw a spanner into the works.
The commission expressed concern over the effect the transaction might have on outdoor advertising and radio broadcasting in Johannesburg.
It decided to recommend to the Competition Tribunal to approve the deal under certain conditions.
It recommended that the Tiso-led consortium dispose of Nail's interest in Radio Jacaranda 94.2FM, Kaya FM and Nail Outdoor. The consortium should notify the commission on any sale of these assets.
The Tiso-led consortium - which consists of Multidirect Investments 180, a wholly owned subsidiary of Tiso Capital Partners; Capricorn Capital Partners, Investec Bank and the Mineworkers Investment Company - had valued Nail assets at more than R1 billion, or R10.50 a share.
"We will study the impact of those recommended conditions and try to understand them in full context," Fani Titi, the chairman of Tiso Capital Partners, said yesterday.
He said the consortium was pleased with the commission's decision.
Asked about possible media regulation hurdles, Titi said the Tiso-led consortium had been in touch with Icasa.
"The process with Icasa is taking place and we are satisfied with all the regulatory processes," he said.
The Johnnic Communications (Johncom) consortium, a rival bidder including Kagiso Media and Caxton & CTP Publishers and Printers, which offered to acquire Nail for R1.3 billion, or R10.66 a share, could still be interested in acquiring assets that will be disposed of by the Tiso-led consortium.
"We will need to study the announcement by the commission before we make any comment," said Connie Molusi, the chief executive of Johncom.
He was unwilling to confirm the rumours that the Johncom-led consortium had purchased the Sowetan newspaper, but said: "There have been ongoing discussions with the Tiso-led consortium."
Kenny Setzin, a director of Nail, welcomed the announcement by the commission, saying: "The outstanding hurdle is the decision that should be taken by Icasa."
Nail shares closed unchanged at R11 yesterday. Johncom closed up 20c at R13.60.