AGREEMENT
Novus falls on news print deal is still on
Novus also said it expected headline earnings for the year to March to fall 20-23%
Novus Holdings’s share price fell 3.68% to R7.85 on Tuesday after it announced the existing printing agreement with Media24 would not be terminated.The decision not to terminate what is, for Novus, an important contract that accounts for about 25% of group revenue, was taken after discussions with the JSE. The SENS announcement released by Novus did not refer to the details of the talks but said the existing printing agreements "remain in effect, on the terms as disclosed in Novus Holdings’s prelisting statement dated 4 March 2015".The engagement with the JSE followed public criticism about an earlier announcement that Media24 was exercising its rights to end the existing contract. At the end of January, Novus informed shareholders that the death of Lambert Retief, a nonexecutive director and former Novus CEO, had triggered Media24’s right and that the two parties were finalising new terms. That right was based on the terms of a management agreement between Novus, Media24 and Retief...
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