The Competition Tribunal has today dismissed an application by Caxton to prohibit the implementation of a ‘restated management agreement’.
The agreement was concluded between the Media24, Novus and Lambert Rietief.
“Caxton alleges that the Novus listing has made it necessary for Media24, Novus and Mr Retief to ‘restate’ the existing management agreement, which it alleges, has the effect of depriving Mr Retief of the operational and management control of the company which he currently enjoys,” the tribunal said.
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The Novus listing is scheduled to take place on 26 March 2015.
“If the listing of Novus proceeds, Caxton alleges that the board of directors of Novus will be ultimately responsible for the management and operations of the company,” said the tribunal.
“Caxton alleges that the appointment is determined by Media24 as the ‘controlling’ shareholder and thus it alleges, there is a change of control in Novus by Media 24 from joint to sole control.”
Caxton sought an order from the tribunal requiring the first to fourth respondents to notify the acquisition of sole control by Media24 over Novus.
It also sought an order prohibiting the implementation of the restated management agreement arising as a result of the Novus listing.
The reasons for the tribunal's decision will follow at a later stage.