Bloomberg News

Blackstar Plans Mvela Buy for as Much as 1.9 Billion Rand

December 09, 2011

(Updates with total consideration in first paragraph.)

Dec. 8 (Bloomberg) -- Blackstar Group SE announced its firm intention to buy Mvelaphanda Group Ltd., the largest shareholder in South African media company Avusa Ltd., for as much as 1.9 billion rand ($194 million).

Mvela Group investors would choose either cash, Blackstar shares, or a combination of these in return for their stake, the companies said in a statement today. Blackstar, a Luxembourg- based investment company, has secured support from Mvela Group’s largest shareholder, Mvelaphanda Holdings Ltd., which owns 20 percent, it said. The maximum cash portion of the offer is 800 million rand.

“The cash consideration is just 45 percent of the purchase price,” Blackstar Executive Chairman Andrew Bonamour said by phone from Cape Town today. “The total consideration is about 1.9 billion rand, or about 3.77 a share.”

Mvela Group’s biggest assets are a 3 percent stake in Absa Group Ltd., Barclays Plc’s South African bank, and a 21.3 percent stake in Avusa, the South African media company that has a joint venture with the Financial Times and publishes the nation’s largest weekend broadsheet newspaper.

“The Blackstar board believes that Mvela Group’s assets represent an attractive investment portfolio to which it can add significant value in the medium term and provides an excellent fit as part of Blackstar’s growth strategy,” the company said in the statement.

Mvela Group shares closed 1.2 percent up at 3.34 rand each, giving the company a market value of 1.9 billion rand.

--Editors: Ana Monteiro, Paul Richardson

To contact the reporter on this story: Sikonathi Mantshantsha in Johannesburg at

To contact the editor responsible for this story: Kenneth Wong at

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