Lebashe Investment Group to be first choice of buyer for Gallo Music Group
Lebashe has been granted a right of first refusal to purchase Gallo
Lebashe Investment Group, which is buying Tiso Blackstar's media assets for R1.05bn, has been granted a right of first refusal if the company elects to sell its interest in Gallo next year.
Tiso Blackstar announced on Monday that Lebashe had been granted a right of first refusal to purchase Gallo within 12 months after the sale of its SA radio assets if Tiso wished to sell them during that time. The businesses include Gallo Record Company and Gallo Music Publishers.
The publisher of Business Day, the Sunday Times, Sowetan and other titles, announced in June it had sold its print, broadcasting and content businesses in SA, Ghana and Kenya for R1.05bn to Lebashe.
Should Tiso Blackstar wish to dispose of Gallo or receive a written offer during the period from third parties it would first offer to sell them to Lebashe on similar terms, the company said.
Gallo Record Company, SA’s largest and oldest independent music label, has been recording music since 1926. Gallo Music Publishers owns and administers one of the largest African copyright catalogues.
Lebashe is an unlisted investment holding company focusing on financial services and ICT, among other things. The company has grown significantly since its inception and holds stakes in a number of well-known businesses, such as Capitec, EOH and RainFin.
The company expects the sale of the African radio assets to become effective by November 29 2019, with the SA radio business to be sold by July 31 2020.
Tiso Blackstar had said in June it will retain ownership in multichannel marketing and communication solutions business Hirt & Carter (H&C) and Gallo.
The majority of funds received for the SA operations will be used to reduce Tiso Blackstar’s debt and allow further growth of H&C as its core operation.
The transaction is subject to shareholder approval, with the company saying it will invite shareholders to a general meeting for this purpose by September 12 2019.