Caxton sells off R100m TMG shares
Caxton sold about R100 million of shares in the Times Media Group (TMG) between June and December last year, Business Day reported on Tuesday.
According to the newspaper, Caxton bought a significant stake in TMG from Mvelaphanda last January, when TMG was trading at less than R14. It traded between R18.60 and R21 from the end of June to December. On Monday a TMG share cost R19.90.
The newspaper reported that while Caxton held about 14.7 million shares (an 11.6 percent stake) in TMG at the end of June, it owned 9.5 million shares (just over seven percent) by the end of December.
The newspaper reported that Caxton also in effect blocked a TMG bid to buy Ramsay Media, which publishes magazines, including Getaway and Car.
TMG had reportedly planned to acquire Ramsay Media to try and draw synergies with its own motoring platform, which includes Ignition.
However, Caxton, which was a 30 percent shareholder in Ramsay Media, exercised its pre-emptive rights to buy the Ramsay family's remaining 70 percent stake.
Business Day reported that there were concerns that, as a result, TMG might reduce the print work it procured from Caxton, and redirect this to its competitor Paarl Media.
The newspaper reported that talk in the market was that Caxton intended to expand its digital platform.
Would you like to comment on this article or view other readers' comments? Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.