Kagiso Media has reached an agreement to purchase the remaining shares held by Lagardère Active Radio International (LARI) in its flagship radio business Jacaranda FM, and multi-media sales house Mediamark.
The deal will see Kagiso Media acquire an additional 20% of Jacaranda FM immediately, with the 49% of Mediamark currently held by LARI transferred to Kagiso after the satisfaction of some suspensive conditions. At the conclusion of both transactions, Kagiso Media will hold 100% of shares in each company.
Kagiso Media currently actively manages both businesses so no disruption to current operations is expected. Furthermore, LARI representatives will continue to serve on the Mediamark board until the Mediamark transaction becomes unconditional.
Chairman of Kagiso Media, Mbonisi Danisa, says the transaction was motivated by continued confidence in the radio sector and, in particular, the ability of both businesses to perform under tough economic circumstances.
“Jacaranda FM is one of South Africa’s most successful commercial stations, with a large and loyal following from listeners and clients alike. It has a solid digital offering with engaging on-air talent, and we are delighted to be integrally involved in its future,” he said.
“Mediamark has a diversified portfolio of media types and is well positioned to continue its role as a trusted partner to clients and agencies looking to navigate an increasingly complex media environment. This is a best-of-breed business and increased local shareholding is part of its transformation journey, for the benefit of its staff and its customers,” Danisa said.
LARI, a division of listed French media organization Lagardère, was a founder investor in both businesses in the mid 90’s, when the commercial radio industry was born out of the privatization of the SABC’s regional services.