The Competition Commission has recommended the unconditional approval of a proposed deal where eMedia Holdings (EMH) will acquire eMedia Investments (EMI). This acquisition is expected to grant EMH complete and independent control over EMI’s long-term strategic decisions and enhance the liquidity of EMH’s shares.
eMedia Investments oversees several major entities, including E-tv, Platco Digital, E-sat TV, Yired, SASANI Studios, and eMedia Properties. Platco Digital is responsible for Openview’s satellite service.
EMH is listed on the Johannesburg Stock Exchange and is fully controlled by Hosken Consolidated Investments (HCI).
The Commission highlighted that both EMH and HCI have investments in various sectors, such as hotel and leisure, media and broadcasting, transport, energy, services, technology, and property.
eMedia Investments is co-managed by EMH and VenFin, a holding company created as part of the Rembrandt Group’s restructuring in 2000. This restructuring saw Venfin retain technology investments while Remgro retained traditional investments.
Remgro, a JSE-listed investment holding entity, has a diverse portfolio that includes healthcare, consumer products, insurance, industrial operations, infrastructure, media, and sports.
In its statement, the Competition Commission stated that the transaction is not likely to significantly reduce competition in any market, categorising it as an internal restructuring. Additionally, no substantial public interest concerns were raised regarding the deal.
According to a circular released by eMedia, EMH holds approximately 67.69% of EMI’s shares, with VenFin possessing the remaining stake. As per the agreement, VenFin will exchange its EMI shares for EMH shares, which must then be promptly distributed to Remgro shareholders.
Should VenFin or Remgro not distribute these shares, EMH is entitled to repurchase them from either entity for a total cash amount of up to US$4.4 million.
The transaction is poised to significantly boost EMH’s scale by consolidating full ownership of EMI under the listed company, allowing EMH to wield complete control over EMI’s long-term strategic planning. Furthermore, eMedia noted that the deal will increase the share of EMH N shares held by public shareholders, thereby enhancing free float and liquidity in the market.
