The Competition Tribunal overruled objections from media company Caxton and unconditionally approved the sale of Johnnic Communication’s (Johncom’s) 38% stake in M-Net and SuperSport to Naspers.
The tribunal did not give reasons for the decision, but said these would follow shortly. Caxton’s objections related to concern that the deal would enable Naspers to “bundle” its advertising with print media to the detriment of other media companies.
The tribunal unconditionally approved the merger between Naspers, M-Net and SuperSport last week. Naspers’ subsidiary MultiChoice will benefit in the pay-TV market through Naspers’ full ownership in M-Net and SuperSport.
Naspers chief financial officer Steve Pacak said: “It’s taken a year but we can now go ahead and complete the deal.” However, if Caxton decides to exercise its right to a review from the Competition Appeals Court, this would delay the sale.
It was recently announced that businessman and politician Tokyo Sexwale’s Mvelaphanda Group would buy 30% of Johncom’s media assets, for R1.43bn, from institutional shareholder Allan Gray once Johncom lists its media assets in a company to be temporarily known as Opco.
