Deal at 17% premium to Avusa's previous close, Avusa shares up nearly 5% on news, but below offer price

South African investment group Mvelaphanda Group (Mvela) bid 1,13 billion rand ($134,11 million) for shares it does not already own in domestic media firm Avusa Ltd, the two companies said on Tuesday.  

Under the cash and share offer deal, Mvela would buy the rest of the company through its unit Richtrau, which it plans to spin-off and separately float on Johannesburg bourse.  

Mvela, Avusa’s top shareholder with about a 21% holding, tabled a 24 rand per share offer and an option to exchange 1,48 Richtrau shares for each one held in Avusa.  

Shares in the owner of the Sunday Times, Sowetan, Nu-Metro and Exclusive Books jumped 4,88% to 21,50 rand by 1017 GMT, albeit well below the offered price.  

The bid, which values Avusa at about 3 billion rand, is about a 17% premium on the previous day’s closing price of Avusa.  

Mvela said Avusa shareholders with 65% of the firm have agreed to vote in favour of the deal and 57% of its own shareholders also support the transaction.