JOHANNESBURG - The Gupta-owned media companies, news channel, ANN7 and the newspaper, The New Age have reportedly been sold.
It is believed that a company owned by Mzwanele Manyi bought the media agencies.
The Manyi-owned Lodidox bought ANN7 (Infinity Media) for R300m and The New Age (TNA Media) for R150m.
According to Oakbay, the agreement will be concluded over the next few weeks, subject to any regulatory requirements. Oakbay has stated the the sale was to help preserve the jobs of about 7 500 people who work at the companies.
A statement by Oakbay stated, "The sale is part of Oakbay’s commitment to preserve jobs and provide certainty to over 7500 hard-working employees throughout the group and to safeguard the inherent value of the businesses in which they work."
The document also stated that under a new majority shareholder, Oakbay believes that both the business and it employees will have their deserved bright prosperous future.
"The sale will also allow the shareholder the time to focus on clearing its name in the face of unfounded media allegations," the document stated.
Acting Chief Executive of Oakbay, Ronica Ragavan said: "We are delighted to have reached an agreement with Lodidox and the management team; the sale of our shareholdings will secure the future of these businesses and help preserve the jobs of their employees. Both businesses are inherently sound and well positioned for growth in their respective market segments. We wish them every success in the future."
Also commenting on the agreement, Lodidox owner, Mzwanele Manyi said: "I am delighted to have reached agreement with Oakbay and look forward to successfully completing the deal.These are two strong businesses which are full of potential and, under the right external circumstances, can become an increasingly important and relevant part of the South African media landscape."
"In addition, I am particularly impressed that the shareholders of Oakbay have agreed to do a vendor financing at acceptable terms as part of their commitment to transformation and to expedite the transaction," Manyi concluded.
View some of the reactions from Twitter regarding the sale, below:
Bathi it's a vendor financing deal.
So basically Manyi is financed by Oakbay
Oh I am laughing so much I can't breathe. Oakbay Gupta Bullsh*t.
So Oakbay give @MzwaneleManyi R450m to buy shares in its media outlet? It's like JZ selling Nkandla homestead to Duduzane, nxxx.
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