Media24 ruling hits Novus
The Competition Commission’s recommendations Media24 reduce its holding in the printing group is the latest in the competition saga
Novus Holdings’ share price fell almost 5% on Tuesday following the Competition Commission’s recommendation that Media24 reduce its holding in the printing group to 19% from 66%. The recommended divestiture increases the likelihood that Media24 will terminate its printing contract with Novus. If the recommendation is accepted by the Competition Tribunal, Media24 will unbundle the majority of its Novus shareholding to Naspers’s shareholders. Media24 is wholly owned by Naspers. Stamp of Approval The commission’s recommendation is the latest development in a drawn-out play around the control of Novus, which dates back to its listing in 2015. Essentially, the commission is giving a stamp of approval to a merger that was implemented through the listing without its authority. But that stamp of approval includes the obligation to unwind the control position created by the listing. Until the 2015 listing, Media24 held more than 80% of Novus, which was unlisted and called Paarl Media Group. ...
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