"The transaction puts Primedia well on track to meeting the Media Charter requirements, and strengthens a long standing and very successful relationship between ourselves and the Primedia Group" said Paul Nkuna, CEO of the Mineworkers Investment Company.
MIC's stake is worth over R600 million at current market prices, making it Primedia's largest shareholder, and this the largest BEE transaction in the media sector to date.
The deal also brings MIC's voting rights in line with its economic interest in Primedia. MIC has a joint 48% voting interest with Kirsh Family.
Commenting on the transaction, Keshan Pillay, Executive Director of MIC, said, "MIC's acquisition of another significant tranche of shares in Primedia is a reflection of our confidence in the strategic direction and prospects for the group. Great progress has also been made with transformation at Primedia, and MIC is proud to further strengthen the relationship with the group in this second decade of democracy in South Africa."
A central aspect of MIC's relationship with Primedia has been the non-executive roles played by MIC personalities. The close relationship and backing by the Kirsh family ensured that MIC directors could significantly aid Primedia in shaping its new group culture via an active operational transformation programme.
Since being seconded from the MIC in 2000, Kuben Pillay has now risen to being CEO of the group's advertising businesses. Other senior appointments from MIC have also been made at the Primedia Out of Home division and Megapro Marketing.
Primedia was ranked as the most empowered listed media company and 21st in the country's top 185 listed companies in the 2005 Financial Mail / Empowerdex Empowerment Survey.
