Tiso Blackstar Group to clear liabilities of R414.9m in Lebashe transaction
The media group says the financial impact of the sale could not be given when the deal was first announced
JSE-listed media company Tiso Blackstar Group revealed to shareholders that it will wipe R414.9m in liabilities off its books when it concludes its deal to sell its SA and Africa media assets to Lebashe Investment Group for R1.05bn.
Tiso Blackstar Group, the publisher of Business Day, the Sunday Times, Sowetan and other titles, announced in June that it had agreed to sell its print, broadcasting and content businesses in SA, Ghana and Kenya to Lebashe Investment Group.
The media group said the financial impact of the transaction could not be given when the deal was first announced.
The group’s liabilities are made up of Tiso Blackstar TBG SA’s net liabilities of R622.2m, and R123.5m net liabilities for the SA radio business, set against the Africa radio business’s net assets of R370.9m.
The profits after tax attributable to the assets to be disposed of amounted to R4.2m for the six months to December.
Tiso Blackstar at the time said the sale, which is subject to regulatory and other approvals, will unlock significant value for its shareholders “while also ensuring that the media business has a strong and committed shareholder in Lebashe to take it forward”.
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, with the SA radio business to be sold by July 31 2020.