TIMES MEDIA GROUP LIMITED - Voluntary Announcement: Acquisition of a 65% interest in Mpower Radio (Pty) Ltd in Mpumalanga, South Africa

Voluntary Announcement: Acquisition of a 65% interest in Mpower Radio (Pty) Ltd in Mpumalanga, South Africa

TIMES MEDIA GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2008/009392/06)
Ordinary Share Code: TMG
Ordinary share ISIN: ZAE 000169272
(“TMG” or “the Company”)

VOLUNTARY ANNOUNCEMENT: ACQUISITION OF A 65% INTEREST IN
MPOWER RADIO (PTY) LTD IN MPUMALANGA, SOUTH AFRICA

1.   Introduction

     TMG is pleased to announce the acquisition by the Company
     of a 65% interest in Mpower FM Radio (Pty) Ltd (“Mpower”)
     (“the Acquisition”).

2.   Description of the business carried on by Mpower

     Mpower is a commercial radio broadcaster based in
     Nelspruit, Mpumalanga, with a satellite studio in
     Emalahleni. The station was launched in 2007, but
     experienced financial difficulties and was placed under
     business rescue in August 2013.     The station has been
     broadcasting an adult contemporary format, in English, to
     the major regions of Mpumalanga. It is the intention of
     TMG to re-launch and re-brand the station in early 2014
     as part of a larger broadcast strategy in South Africa
     and Africa.

3.   Rationale of the Acquisition

     TMG’s strategy includes the acquisition and development
     of broadcast assets, specifically radio and television.
     TMG recently acquired an interest in Multimedia Ghana,
     and will continue to look for additional broadcast
     opportunities in Africa, including South Africa. In a
     broadcast landscape where frequencies and commercial
     licences are scarce, Mpower presented an opportunity to
     establish a footprint in radio for TMG.    With a revised
     focus more appropriate to the audience of Mpumalanga, we
     believe Mpower will provide a solid contribution to the
     TMG   broadcast  portfolio.      TMG  will   support  the
     commercialisation of the station with an advertising
     sales solution from its industry leading national sales
     team and provide additional management and programming
     resources. Other shareholders in the station that come
     with an established radio pedigree are African Media
     Entertainment and Direng Investment Holdings, as well as
     local shareholders, Mbombela Media Consortium.

4.   Purchase consideration

     The initial purchase consideration payable to the
     business rescue practitioner appointed in respect of the
     Company is R6 million, of which R1,5 million has been
     paid to date.

     In addition, a further R12 million has been committed to
     providing   working  capital   for   Mpower’s turnaround
     strategy over the next 2 to 3 years.

5.   Conditions precedent

     The Acquisition was subject to 2 conditions precedent,
     namely a signed shareholders agreement in respect of the
     Company,   and  approval   of  the   Acquisition by  the
     Independent Communications Authority of South Africa.
     Both conditions have been fulfilled.

6.   Effective date of the Acquisition

     The effective date of the Acquisition is 3 December 2013.

6 December 2013
Johannesburg

Sponsor
PSG Capital

Date: 06/12/2013 03:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.