The R450m paid by Mzwanele Manyi for the Guptas’ media interests — the ANN7 television channel and The New Age newspaper — appears to be far too much. This is according to a valuation of Infinity Media Networks undertaken two years ago in October 2015 by accounting firm Cajee Razak & Associates. Infinity Media Networks is the company that housed the media interests of Gupta-owned Oakbay Investments. This valued the company on the basis of the present value of future earnings at R52m for the value of the business enterprise and R41m for 100% equity value. The assets were valued on a fair market value basis. Even though the business model of the firm might have changed in two years, it is difficult to imagine that its value could have soared about 10 times over this period, particularly in the midst of a downturn. The acquisition was made by Manyi’s company, Lodidox, with R300m paid for the ANN7 news channel and R150m for a two-thirds stake in TNA Media, the publisher of The New Age. ...

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