The media and entertainment company disposed of the cinema division and Popcorn Cinema Advertising Sales, which is the sole operating business of Avusa Entertainment, to Subcocept Limited, a company funded by One Fifty Capital.
It will dispose of 100 per cent of Nu Metro and Popcorn Advertising for a purchase consideration of 75 million rand payable in cash.
David Shapiro from Sasfin Securities expressed his surprise at the purchase consideration issued by Times Media.
“I know that this is all part of the restructure of the Times Media Group, obviously it’s not a core asset, I thought there would have been more rights attached to it. Obviously now we’re downloading, we watch DSTV so it just gives you an idea of how these places have fallen, how value has fallen in that area,” he told CNBC Africa.
Times Media indicated that the rationale for the disposal was as part of its turnaround strategy. It has specifically decided to exit non-core businesses identified within the group – one such business is Nu Metro.
“The results came out fairly recently and when I looked at them, there was no suggestion of a turnaround yet and, in fact, if you look at the share price, it’s still at a very high level, a very high PE. They’ve got a lot to do to justify the private equity deal. Newspapers are a tough industry, they’re trying. There’s a lot of changes that have happened there,” Shapiro said.
Nu Metro is the second largest cinema operator in Southern Africa while Popcorn Advertising sells on-screen advertising space on behalf of Nu Metro.