Media Acquisition
Sizwe Dlamini | Published 11 minutes ago
Sekunjalo Group chief executive officer (CEO) Lucien Jacobs has moved to clarify the role played by the Southern African Clothing and Textile Workers’ Union (Sactwu) in the 2013 acquisition of Independent Media, arguing that recent narratives surrounding the transaction had omitted key facts and failed to acknowledge the financial support provided by the Sekunjalo consortium over more than a decade.
According to Jacobs, the Independent Media Consortium (IMC), together with the Public Investment Corporation (PIC), had already emerged as the preferred bidder before Sactwu joined the transaction.
“The consortium was built around a transformative vision to return one of South Africa’s largest media groups to local ownership, protect jobs, preserve editorial diversity and ensure meaningful participation by community stakeholders,” Jacobs said.
He said Sactwu was not an original partner in the acquisition but sought participation following engagements involving senior government figures, including then ministers Ebrahim Patel and Blade Nzimande.
Jacobs said Sactwu initially agreed in April 2013 to invest R200 million in exchange for a 10% stake in IMC.
However, he claimed that the arrangement was later altered due to allegations arising from the Trilinear transaction.
According to Jacobs, Sactwu subsequently reduced its commitment to R150m, structured as a loan and shareholding arrangement.
He further stated that none of Sactwu’s investment flowed to Sekunjalo.
“Those funds were directed primarily towards the PIC, advisers and legal costs, including law firm ENSafrica, which ultimately went to the Irish Independent Group for the acquisition. No portion of those funds enriched Sekunjalo,” he said.
Jacobs also alleged that Sactwu had committed a further R250m towards the establishment of a workers’ newspaper, World of Work (WoW), but failed to fulfil that commitment.
He said Sekunjalo subsequently funded the publication’s print, editorial and distribution costs and later instituted a claim of approximately R628m in the Western Cape High Court relating to the matter.
The Sekunjalo CEO further claimed that efforts were made in 2017 to convert certain loan arrangements into equity and that Sactwu was offered 12 million shares in AYO Technology Solutions at R1.50 per share.
He also alleged that Sactwu received shares in Sagarmatha Technologies valued at approximately R500m at nominal value.
Jacobs said Sactwu benefited significantly from its participation in the transaction, including what he described as extensive media support, an exit from its 8% participation and a premium payment of approximately R58m.
“The total value received by Sactwu from various transactions and benefits is estimated to be between R1.7 billion and R2bn,” Jacobs said.
The statement comes amid renewed scrutiny of the Independent Media acquisition and the various stakeholders involved in the transaction.
Jacobs rejected suggestions that Sactwu had been disadvantaged, arguing instead that Sekunjalo and its partners had borne the financial burden of sustaining Independent Media during a period of severe disruption in the newspaper industry.
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