Novus’s share price bounced back on Wednesday after a sharp fall on Tuesday. The fall followed the Competition Commission’s recommendation that controlling shareholder Media24 reduce its stake in the printing company from 66% to 19%.Novus has been part of the Naspers-Media24 group for decades. When Naspers was predominantly a print media company, Novus (previously Paarl Media Group), was an important part of the group. More recently, other sources of income began to overtake its print interests and Novus’s position diminished. Industry sources say tension between Novus and Media24 has been rising, aggravated by Media24’s perception that its contract with Novus was too costly. There are a few reasons why the Novus share price might have bounced back on Wednesday as shareholders would have paused to consider the implications of this week’s recommendation from the commission. One is that despite Media24 shedding its controlling stake, it’s unlikely that Novus will lose much of the medi...
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