For very understandable reasons Mzwanele Manyi's transformation into a media mogul this week didn't exactly have South Africans celebrating. The former government communications and information system head's sudden acquisition of the Gupta family-owned The New Age newspaper and ANN7 television channel for R450-million was a difficult pill to swallow for many, given Manyi's consistent and staunch defence of the family, who, in turn, are accused of plundering billions in dodgy state contracts thanks to their political connections and proximity to their friend. Eyes were rolling when it emerged that the deal was financed by the Gupta family in a structure where Manyi's company would repay the purchase price using the cash flows of the business. It's important to note that vendor financing assumes the business being sold will generate enough cash flows to settle the purchase price, and also service the cost of the funding, assuming there is interest payable on the loan. Seasoned dealma...

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