Competition Commission approves Tiso Blackstar, Lebashe transaction
The Competition Commission has recommended that the Competition Tribunal approve the proposed takeover of Tiso Blackstar Group’s media assets by Lebashe Investment Group without conditions, it said on Monday.
The commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The commission further found that the proposed transaction does not raise any public interest concerns.
Tiso Blackstar, the publisher of Business Day, the Sunday Times, and Sowetan, announced in June that it had agreed to sell its print, broadcasting and content businesses in SA, Ghana and Kenya to Lebashe for R1.05bn. Lebashe is an unlisted investment holding company focusing on financial services and ICT, among other things. The company holds stakes in a number of well-known businesses, such as Capitec, EOH and RainFin.
In September, Tiso Blackstar said it will delay the release of its financial results for the year to June as it concludes the sale. Tiso Blackstar said the deal has resulted in accounting and disclosure complexities associated with the restructuring and unbundling of these integrated operations. It wants to ensure that the businesses are appropriately classified as non-current assets held for sale and recorded as discontinued operations under IFRS 5 non-current assets held for sale and discontinued operations.
There has also been a delay in receiving the financial results of certain associate companies for equity accounting into the group’s financial results, it said.
Tiso Blackstar’s shares closed 1.19% up at R3.39.