The Competition Tribunal has unconditionally approved the sale of
Johnnic CommunicationÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s (JohncomÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢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 ÃƒÂ¢Ã¢â€šÂ¬Ã¢â‚¬Â 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 CaxtonÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s concerns, that control of such an asset would enable Naspers to ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œbundleÃƒÂ¢Ã¢â€šÂ¬Ã‚Â 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.