Listed private equity Stimulus Investment Limited has revealed that it will sell off Namibia Media Holdings (NMH) and its printing agency, Newsprint Namibia, for an undisclosed amount.
The investment is in the group that publishes and prints mainly Republikein, Allgemeine Zeitung and Namibian Sun.
The group, managed by Albe Botha as chief executive, also prints New Era and will now reportedly be owned by NMH’s management through Emeraldsand Properties (Pty) Ltd.
“The shareholders of Emeraldsand will include various members of the NMH and Newsprint management teams,” the update reads.
Stimulus currently owns through its wholly owned subsidiary Desert Trade Investments (DTI) a 79,95% shareholding interest in NMH and its subsidiaries, and an 80% interest in Newsprint.
“DTI has agreed to sell all the issued ordinary shares held in NMH and Newsprint … the transaction will be partly settled in cash with the remainder being repayable in terms of a financing arrangement,” the update further reads.
This investment was for about 10 years, as Stimulus invested in the media house in 2012.
The deal is reportedly subject to certain conditions, including the approval of the Namibian Competition Commission.
Stimulus is an investment holding company, registered and incorporated in Namibia.
Its 2011 preference shares are listed on the Namibian Stock Exchange.
These shares offer the holders thereof exposure to a diversified portfolio of unlisted private equity type investments.
This is the second time in a short period that Stimulus is selling a stake in some of its investee companies.
Last month, Stimulus announced it has sold its stake in printing equipment supplier Nashua Namibia after close to two decades.
It could be that the NMH deal is also in line with Stimulus’ disinvestment in some companies as it plans to have gotten out of major deals by 2026.
It is not clear how much the NMH Group and Newsprint returned as profits to Stimulus as both Stimulus and NMH were mum on the deal’s worth and returns.
Established in 2004, Stimulus has held equity in local privately owned companies such as Plastic Packaging, the Solar Saver Group, Neo Paints, the Namibia Media House Group, Polyoak and Walvis Bay Stevedoring.
At the end of February this year, Stimulus’ assets under management amounted to N$651,1 million, and these assets returned about 13,6% as an annual return to investors which include the Government Institutions Pension Fund.
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