South African Media Group Buys 33% Share In Ghana Broadcaster

South African Media Group Buys 33% Share In Ghana Broadcaster

South Africa’s Times Media Group is expected to pay $15 million in cash for a 33 percent share in Ghanaian broadcaster Multimedia Group, a move that will expand their footprints in West Africa, according to a report in AllAfrica.

Listed on the Johannesburg Stock Exchange, Times Media operates TV stations and newspapers including Business Day, Financial Mail, Sunday Times, The Home Channel, Ignition and Learning Channel.

Multimedia Group owns six of Ghana’s leading radio stations, plus TV and online media including Joy FM, Adom FM, Asempa FM, Luv FM, Hitz FM, Multi TV and Myjoyonline.com. It also owns a free-to-air satellite TV service reportedly available in Nigeria.

The deal will consolidate Multimedia Group’s  business, confirm the credibility of its brand and enable expansion into a bigger market, said Multimedia CFO Ken Ansah.

This is the first foray outside South Africa for Times Media under its new management. Five years ago, under previous owner Avusa, the group exited Nigeria and Kenya, selling its ventures there for $3.8 million.

In Nigeria, Avusa had logistical difficulties and a business that was undercapitalized, the report said. In Kenya, Avusa had large working-capital needs and was operating in a challenged political and economic environment.

The Ghana acquisition should help Times Media reduce reliance on print media and claim its position in the fast-growing African continent, the report said.

As a free-to-air TV platform, Multimedia sells set-top boxes and is dependent on advertising revenue. Multimedia also owns an online news platform, social networking site and an events management and marketing service.

South Africa’s Kagiso Media, which is looking to expand in the rest of Africa, previously expressed an interest in Ghana’s Multimedia, the report said.