The Mineworkers Investment Company (MIC), through its subsidiary Nam-Mic has completed the acquisition of a 25.1 percent equity in Primedia Outdoor Namibia, in a deal that prompted the delisting of the latter’s holding company from the Johannesburg Stock Exchange (JSE) last year due to its private equity nature.
After two years of concerted negotiations, the two entities have finally sealed a deal that has been structured in such a way that the equity stake is self-funding through operations and profits of the business over a negotiable, but limited period. The deal will allow MIC, Primedia’s empowerment partner, to increase its economic interest in the company.
“To us in NAM-MIC, this acquisition is a welcome investment adding to the already existing diversified investment portfolio of NAM-MIC Holdings, whose broad-based assets in financial services, mining, transportation, travel, mobile communication, engineering services, property development, catering, medical aid, to mention but a few, should create synergies between Primedia media businesses and our broad-based customer base,” Nam-Mic Investment Holdings Chairman, John Shaetonhodi said.
MIC has a strong position in Primedia as it has invested approximately N$90 million of its own capital into the South African-based entity, which equals 22.1 percent equity participation. Together wi-th the Kirsch family, MIC has joint voting control of 48% of Primedia. The South African media reported last year that in an attempt to strengthen its status in Primedia, MIC and the Kirsch family, through a consortium, offered Primedia’s minority stakeholders a buyout offer of around N$6 billion.
The deal makes for a welcome boost to Namibia’s corporate sector, given Primedia’s business credentials in both Namibia and South Africa. The company owns radio stations 702 Talk Radio, 94.7 Highveld Stereo and part of Kaya FM in South Africa’s Gauteng Province. It also owns various other exciting assets including CommutaNet, Primedia Outdoor, a 40 percent stake in the South African Premier League football club, the Kaiser Chiefs, and a 50 percent stake in eXactMobile.
The company is the leading black economic empowerment entity, with a 41 percent black representation in its executive management and 40 percent black women representation in management.
As part of the new equity structure, MIC has appointed three directors to the board of Primedia Outdoor Namibia. The Namibian entity has also been granted the privilege of appointing the board chairman and the company’s transformation committee.