The brave expansion plan of black economic empowerment (BEE) group, Kagiso Media, seems to have hit a snag with the group announcing yesterday that the acquisition talks it had with investment holdings giant Remgro have been called off.
These talks were designed to deliver four marketing assets into the growing Kagiso Media. These assets held by a Remgro wholly owned subsidiary VenFin Media Investments include an indirect interest of 50% in Blue Bulls Company. In the picture there was also 100% of Trinergy Brand Connectors, Experiential Marketing and EXP Momentum.
Kagiso Media announced yesterday that negotiations with Venfin Media Investments have been cancelled by mutual consent.
The group’s statement said in September, negotiations led to the issuing of a notice to shareholders advising them to exercise caution in any share dealings. That cautionary announcement was renewed in October, but has now been withdrawn.
Kagiso Media chief executive Murphy Morobe said “The assets in question presented an opportunity for Kagiso to extend our marketing and communications value chain, but we were unable to carry the negotiations to a successful conclusion and they were cancelled by mutual consent”.
“Kagiso is a growth-focused Group. Going forward, it remains our strategic intention to pursue a mix of organic and acquisitive growth. We are strongly capitalised, with significant capacity for further expansion in both our domestic market and in selected sub-Saharan territories.”
Kagiso Media is one of the few BEE entities which have found sustainable life inside the JSE. The group describes itself as a black owned and black managed investment holding company with interests in substantial media assets. These include stakes in the broadcasting sector like East Coast, Jacaranda FM , OFM, Heart 104.9, Gagasi 99.5 and Kaya FM.