Africa's largest media company Naspers has submitted an offer to buy rival Johnnic Communications' stakes in pay TV channels M-Net and Supersport, an industry source said on Friday.
Shares in Johncom, parent company of Sowetan, Sunday World and Sunday Times, leapt as much as 11 percent on Friday after it said it had received an offer for its stake in M-Net and Supersport, which one fund manager said was worth about R2,2billion, or 30 percent of Johncom's R7,3billion market value.
Johncom said its board was reviewing the offer and urged shareholders to exercise caution dealing in the group's shares.
Johncom owns more than 35 percent of M-Net and Supersport and rival Naspers owns the rest.
No-one at Naspers could be reached for comment, but an industry source said the company - which owns Africa's only pay TV network, DStv - had submitted an offer for the Johncom stakes.
"That would be a logical choice," said African Harvest Fund portfolio manager, Rajay Ambekar, when asked if it would make sense for Naspers to buy the assets.
"They would have pre-emptive rights over the shares [it does not own]."
Naspers is snapping up acquisitions in emerging markets as it braces for competition in its core pay-TV market.
M-Net is a subscription movies and entertainment channel while Supersport provides sport programming. -Reuters