Flickr CC courtesy of Alan Levine
South Africa’s Times Media Group (TMG) has entered into an agreement to purchase a minority shareholding in Radio Africa Limited (RAG) in Kenya, hoping to expand its radio operations into Africa.
The company has announced to its shareholders that it has acquired minority shares in the East African company for US$18.62 million.
Radio Africa Limited is a newspaper television and radio business based in Nairobi, operating three radio stations in the city, namely Kiss FM, Radio Jambo and Classic 105.
“RAG has an impressive and entrepreneurial management team. It operates with high levels of corporate governance, accountability, efficiency and transparency. RAG management is highly focused and closely aligned with TMG’s philosophy and strategy,” TMG said in a statement.
“Radio attracts by far the largest share of advertising spend in the Kenyan market and television is second but with strong growth prospects. The business fits well into TMG’s broadcast expansion strategy in South Africa and the continent, and provides a growth opportunity in print not available in SA.”
HumanIPO reported earlier this year TMG had bought a 60 per cent stake in KwaZulu Natal-based Vuma FM, shortly after acquiring 65 per cent of Mpumalanga-based radio station Mpower FM.
The company also initiated its African expansion by purchasing 32 per cent of Ghana Multimedia Group.
