NAIL to be acquired by Primedia

South Africa-based media company Primedia has offered to acquire the remaining shares of New Africa Investments Limited (Nail) that it does not own, the two announced jointly through a SENS message.

Primedia says it has informed the board at NAIL of its intention to make an offer for the shares not already held by it.

Primedia’s offer to NAIL’s shareholders is either an initial cash consideration of 59.48c per NAIL share, plus an attributable portion of the potential agterskot, which will be payable as and when the Tax Claim is determined.

Or, a once-off cash offer consideration of 102.96c per share with no agterskot (Once-Off Offer Consideration)‚ at a premium of 253 percent to the net asset value of 29.2 cents per NAIL share as at June 30, 2012.

It is NAIL’s majority shareholder with 76.06 percent of NAIL Ordinary Shares and 95.81 percent of NAIL N Ordinary Shares in issue.
In a statement, Primedia says its preference is to hold 100 percent of media assets under its control, which enables it to fully integrate these assets into its business and to derive synergies with the other media assets within its portfolio.

Primedia‚ as the controlling shareholder of NAIL‚ believes that the economic costs of maintaining the listing of NAIL on the JSE far outweigh the economic benefits for NAIL as well as NAIL Shareholders‚ NAIL said in a statement on Friday.

In addition, the NAIL shares have not traded since NAIL’s suspension from the JSE in August 2006‚ and the offer provides NAIL shareholders with an opportunity to realise their investments at a premium to the net asset value of 29.2 cents per NAIL Share as at June 30, 2012.

The offer is conditional on the acceptance by 90 percent of NAIL shareholders.

The media group has various business interests in the media industry ranging from advertising to cinema. Its brands in the digital space include iafrica.com; Exact Mobile and 365 Digital. It also owns a  number of radio stations: 567 Cape Talk; Talk Radio 702; 94.5 – KFM; and 94.7 – Highveld Stereo.

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