Radio station owner African Media Entertainment (AME) is offering to buy financial news service Moneyweb for about R28m.
After the JSE closed on Tuesday, AME issued a statement offering Moneyweb shareholders the choice of a cash offer of 26c per share – a 53% premium to the 17c the share last traded for – or to swap 250 Moneyweb shares for one of its shares.
At the R60 per share AME last traded at, its share offer is 41% higher than 250 Moneyweb shares at 17c each.
AME, which owns Eastern Cape radio station Algoa FM and Free State radio station OFM, said advantages to Moneyweb included “the opportunity to have a single shareholder who will have a vested interest in its growth and development”.
Moneyweb’s largest current shareholder is Caxton, the proprietor of the Citizen newspaper and many suburban free “knock ‘n drop” papers.
AME’s statement – issued jointly with Moneyweb, indicating its management supports the takeover offer – said other advantages included economies of scale and efficiencies.
The deal would give Moneyweb shareholders who opted for AME’s share swap offer better liquidity and the benefit of AME’s relatively higher market rating, the statement said.