Times Media buys stake in Ghana’s Multimedia Group for $14.6m – Report

South African media group, Times Media Group (TMG), is reported to have bought a stake in Ghana’s largest private commercial media group, the Multimedia Group.

The deal is reportedly valued at 144 million South African Rand or approximately $14.6 million.

TMG, owners of Business Day TV, Financial Mail and the Sunday Times acquired a 32.26% interest in Multimedia through subscription for ordinary and preference shares for R144 million, Reuters reported September 17, 2013.

According to Business Day, the Ghana acquisition is expected to help TMG reduce reliance on print media, and claim its position in the fast-growing African continent.

Multimedia Group owns six radio stations and a free-to-air satellite television service as well as other online news portals, an events management and marketing service.

Meanwhile, Multimedia Group has confirmed the deal without giving details. Its CEO Kwasi Twum told myjoyonline.com, a Multimedia product that “this is an exciting time for our business as we consolidate our local operations and build on our expansion into the wider West African market.”

According to Multimedia, Times Media now has a minority stake in its group operations.

A financial data vendor specialized in the Southern African markets, I-Net Bridge, reports that TMG will provide Multimedia with a rand-denominated shareholder loan facility of R40 million.

“The facility will not be drawn on immediately and will be available on request. It will be used to fund the capital expenditure of Multimedia’s expansion programme as the interest rate is significantly lower than that charged by banks in Ghana,” said I-Net Bridge, a TMG media outlet.

It added that the acquisition is not subject to any outstanding conditions precedent and the effective date is September 12 2013.

By Ekow Quandzie