TIMES MEDIA GROUP LIMITED - Voluntary Announcement: Acquisition Of A 60% Interest In Vuma Fm, In Kwazulu-Natal, South Africa

Voluntary Announcement: Acquisition Of A 60% Interest In Vuma Fm, In Kwazulu-Natal, 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: ZAE000169272
(“TMG” or “the Company” or “the Group”)


VOLUNTARY ANNOUNCEMENT: ACQUISITION OF A 60% INTEREST IN
VUMA FM, IN KWAZULU-NATAL, SOUTH AFRICA

1. Introduction

   TMG is pleased to announce the acquisition by the Company of a 60% interest in Vuma FM
   ("Vuma") (“the Acquisition”). This follows the acquisition of 65% of Mpower Fm (Pty) Ltd in
   December 2013.

2. Description of the business carried on by Vuma

   Vuma is a commercial radio broadcaster based in Umhlanga, KwaZulu-Natal. The station was
   launched in November 2012, broadcasting a gospel and inspirational format, mainly in isiZulu, to
   the major regions of KwaZulu-Natal. The station has experienced good growth since its launch and
   TMG believes there is significant further potential for growth with the added resources of the
   Group.

3. Rationale for the Acquisition

   TMG’s strategy includes the acquisition and development of high growth potential broadcast
   assets in South Africa and in Africa. Following the recent acquisition of an interest in Multimedia
   Ghana, and the purchase of Mpower Fm in Mpumalanga, TMG identified Vuma as an opportunity
   to add a valuable new asset to its growing portfolio. Vuma broadcasts in one of the major
   economic provinces of South Africa, and is at an early stage in its development.

   The gospel and inspirational format is an extremely successful one on both radio and TV, locally
   and    internationally,   and   thus    an    attractive asset    for  the    group. 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.

   TMG also has extensive experience in the inspirational format through its ownership of Gallo
   Record Company (“Gallo”). It is the largest and oldest independent record label in Africa. Gallo is
   rich in terms of content and history and has over 200,000 songs on master tape. It is home to
   some of the biggest names in Gospel music and will support the growth of Vuma through its
   catalogue and industry expertise.

4. Purchase consideration

   The purchase consideration payable to the vendors is R25.6 million. In addition, TMG has
   committed to provide working capital to Vuma for the period until breakeven is achieved by Vuma,
   which is expected to be within the next 12 to 18 months.

5. Conditions precedent

   The Acquisition was subject to the approval of the Acquisition by the Independent Communications
   Authority of South Africa. This condition has now been fulfilled.

6. Effective date of the Acquisition

   The effective date of the Acquisition is 30 January 2014.

7. Update on Mpower Fm
  
  TMG recently acquired a majority interest in MPOWER FM, the only commercial radio station
  broadcasting out of Mpumalanga Province. Over the past few weeks the group has worked to
  reposition, rebrand, and relaunch the station. The station will be back on air within weeks and will
  still target the LSM 5-9, age 25-49 listener, principally in English, but with a slant more reflective of
  the local demographics of Mpumalanga.

  The new image of the station will be relevant to Mpumalanga and will reflect the optimistic attitude
  of the audience we engage with, whilst instilling a sense of pride in being from “the land of the
  rising sun”.

30 January 2014
Johannesburg

Sponsor
PSG Capital

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