Novus’s Media24 deal up in the air
Shareholders wait with bated breath for verdict after CEO’s death
The death of former Novus Holdings CEO and chairman Lambert Retief has created uncertainty about one of the company’s most important printing contracts. Although Retief resigned from his executive position years ago, he continued to play a central role in Novus through a management agreement with Media24. That deal set the terms of the relationship between Novus (previously Paarl Media Group), Media24, which owns 66% of Novus, and Retief for decades. It is now set to be rewritten. At stake is Novus’s single most valuable contract, the printing of all Media24’s newspapers and magazines. About 31% of Novus’s annual revenue comes from the contract, which industry sources say is on terms that are favourable to Novus. A statement issued ahead of Novus’s 2015 listing, said the printing deal could only be terminated if the management deal between Novus, Media24 and Retief was terminated.
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