The Competition Tribunal has unconditionally approved the sale of
Johnnic Communication’s (Johncom’s) 38% stake in M-Net and SuperSport
to Naspers, overruling objections from media company Caxton, writes Thom McLachlan in Business Day.

The tribunal unconditionally approved the merger between Naspers, M-Net and SuperSport yesterday. This will give Naspers full ownership in M-Net and SuperSport ahead of likely competition in the pay television market — in which it is a big player through its subsidiary, MultiChoice. The deal will place 20,8-million shares in the hands of Johncom shareholders, at a present value of R4,2bn. When the deal was struck almost exactly a year ago, it cost Naspers R3,15bn.

The tribunal did not gave reasons for the decision, but these would follow shortly.

The decision did, however, rebut Caxton’s concerns, that control of such an asset would enable Naspers to “bundle” its advertising with print media to the detriment of other media companies. Caxton was not available for comment.

Click here to read the full report, posted on Business Day's website.