Hosken Consolidated Investments Limited agreed to acquire 17.4% stake in eMedia Holdings Limited from Southern African Clothing and Textile Workers Union, Endowment Arm for approximately ZAR 120 million.
June 25, 2020
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Hosken Consolidated Investments Limited (JSE:HCI) agreed to acquire additional 17.4% stake in eMedia Holdings Limited (JSE:EMH) from Southern African Clothing and Textile Workers Union for approximately ZAR 120 million on June 26, 2020. Under the transaction, consideration payable by Hosken to Southern African Clothing and Textile Workers Union is ZAR 153.998 million in cash and 20 million shares of eMedia Holdings.
The cash portion of the consideration will be settled by paying ZAR 1 to Southern African Clothing and Textile Workers Union in settlement of the purchase price owing for the sale shares, Hosken Consolidated Investments will make payment on behalf of Southern African Clothing and Textile Workers Union of amounts due and owing by Southern African Clothing and Textile Workers Union to Hosken Consolidated Investments' subsidiary, Deneb Investments Limited and its subsidiaries of approximately ZAR 77.557 million and Hosken Consolidated Investments' wholly-owned subsidiary, HCI Solly Sachs House Proprietary Limited of approximately 38.256 million and the remainder of the cash portion shall remain owing by Hosken Consolidated Investments to Southern African Clothing and Textile Workers Union on loan account, which loan account shall accrue interest at the prime rate plus 1%, and shall be repaid by Hosken Consolidated Investments Limited to Southern African Clothing and Textile Workers Union by no later than December 31, 2021.
Pre deal, Hosken Consolidated Investments held 51% stake and post completion of the deal, it will hold approximately 73% stake in eMedia Holdings. The transaction is subject to customary closing conditions, including approval of shareholders of Hosken Consolidated Investments Limited. As on September 16, 2020, The Board recommend that shareholders vote in favor of the resolution to be proposed at the general meeting. The shareholders of Hosken Consolidated Investments approved the transaction on October 15, 2020. The transaction is expected to be completed on October 19, 2020. Edward Nathan Sonnenbergs Incorporated acted as legal advisor to Hosken Consolidated and will be paid fees of ZAR 0.3 million. Investec Bank Limited (JSE:INLP) acted as financial advisor to Hosken Consolidated Investments Limited and will be paid fees of ZAR 0.2 million. BDO acted as accountant to Hosken Consolidated Investments Limited and will be paid fees of ZAR 0.125 million. Mazars Corporate Finance Limited acted as fairness opinion provider to Hosken Consolidated Investments Limited and will be paid fees of ZAR 0.25 million.
eMedia Holdings Limited is a media company. The Company has an interest in a range of television and radio broadcasting sector, with additional assets in the content, properties, and facilities sectors. It operates through the media segment. The Companyâs broadcasting includes e.tv, is private commercial free-to-air television channel; eNCA, which supplies television, mobile and online news to various channels; Platco Digital operates Openview, a free-to-air satellite television platform. Openview also recently added The Home Channel+. In addition to 20 channels on offer, the platform also hosts 28 radio channels, and eVOD, a video and demand platform allowing to watch shows and movies on any device, at any time. The Company also provides property and facilities services, provide solutions for media companies. The Company's subsidiaries include HCI Invest 3 Holdco, Proprietary Limited, eMedia Investments, Proprietary Limited, and others.
Hosken Consolidated Investments Limited agreed to acquire 17.4% stake in eMedia Holdings Limited from Southern African Clothing and Textile Workers Union, Endowment Arm for approximately ZAR 120 million.
EMEDIA HOLDINGS LIMITED 
