While KTH already owns 51.1 per cent of KML, they are looking to buy out minority shareholders at a cum dividend cash consideration of 28,50 per share.
KML[DATA KGM:KAGISO MEDIA LIMITED.] is a black controlled investment holding company with interests in well-known broadcasting and media assets, such as Jacaranda FM 94.2, East Coast Radio, Kaya FM as well as Urban Brew Studios to name a few.
KTH, which has stakes in Exxaro, MMI Holdings and Kagiso Asset Management, was created in 2011 pursuant to the merger between Tiso Group Limited and Kagiso Trust Investments, two of the most prominent Black Economic Empowerment Investment companies in South Africa.
“KTH invests in businesses in specific sectors that have proven management, robust cash flows and deliver attractive capital growth and returns to its sharegholders on a sustainable basis,” said KTH in a statement on Tuesday
KML shareholders would vote on the transaction at a special general meeting to held within 60 days.
Once the offer has been accepted and undergone regulatory approved, KML shares will be delisted from the Johannesburg Stock Exchange.
“KTH regards the transaction as an opportunity to align the KML strategy with that of KTH.” said the statement.