|Stimulus takes over DMH|
|Written by staff Reporter|
|Wednesday, 04 July 2012 22:17|
Stimulus Investments has announced this week that it intends, subject to the approval of the Namibian Competition Commission (NCC), to acquire a 50% in Democratic Media Holdings (DMH) by acquiring Desert Trade Investments from the Democratic Media Trust for an undisclosed amount. South African-based Media 24’s 50% shareholding in DMH remains unchanged.DMH is Namibia’s largest diversified media group of companies. It has interests in newspapers, online publishing and printing. Monica Kalondo, managing director of Stimulus said that, “Stimulus successfully raised N$250 million in 2011 with the intention to apply that capital in quality Namibian businesses and DMH is a prime example of that.”
Stimulus has invested in various Namibian businesses and the basis of any Stimulus investment is that of a strategic investor with no operational involvement. This approach is particularly useful on the newspaper side of this transaction, as maintaining editorial independence is key to the success any media outlet.
Once approved by the NCC, Monica Kalondo and Rein van Veen will represent Stimulus on the Board of DMH. As Stimulus will be entitled to appoint four directors, the intention is for Stimulus to appoint an additional two independent, non-executive Directors of its election to ensure that the Board enjoys the benefit of diversity and a balanced combination of strategic skills. The Media 24 appointees will not be affected by the transaction.
Stimulus is a Namibian investment company focused on investing in established, successfully operating Namibian companies. Stimulus is majority-owned and controlled by a combination of broad-based empowerment entities and individuals with the capacity to offer strategic advice, as well as pay cash for its equity stake.
The bulk of the empowerment shareholding in Stimulus is apportioned between the Mukwamhalanga Tukondjeni Community Trust, the Disability Benefit Trust, the Vita Thom Scholarship Fund Trust and the Stimulus Trust. The sole objective of all these trusts is to disburse benefits received from Stimulus to broad-based empowerment beneficiaries. With the exception of the Stimulus Trust, all the trusts are independent from Stimulus, have independent trustees and are free to source additional funding elsewhere.
In addition to the above broad-based shareholding, Stimulus is majority owned and controlled by empowerment individuals and entities, with a wholly-owned Namibian business, Pointbreak, being a substantial minority shareholder. The individual shareholders in Stimulus are Sisa Namandje, Wilhelm Shali and Monica Kalondo.