The numbers behind Manyi's R450m deal
Analysts say 'absurd' deal was struck even though ANN7 and The New Age were never set up to be viable media outlets
Mzwanele Manyi, a staunch defender of the Gupta family, will be grossly overpaying for the family’s media empire over the next few years after agreeing to buy television channel ANN7 and The New Age newspaper for R450m. Oakbay Investments, the Guptas’ investment vehicle, is vendor-financing the deals, whereby Manyi’s Lodidox and management will take Oakbay’s 65% shareholding in ANN7 operator Infinity Media Networks for R300m, and its two-thirds stake in TNA Media for R150m. Documents seen by the Financial Mail show that 22 months ago accounting firm Cajee Razak & Associates placed Infinity’s value at between R40.5m and R60.6m, valuing Oakbay’s shares at R39.4m. The valuation was done for the sale of most of the shares owned by Indian shareholder Essel Media, which owns Zee Entertainment on the subcontinent, to Oakbay last year. Essel retains a 5% stake in Infinity.Working on a number of assumptions — including 2% GDP growth and a 10% market rate of return — Cajee Razak gave Infinity...
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.