The indebted Irish media group Independent News & Media (INM) has received a €240 million ($295 million) offer for its South African media businesses from local consortium Sekunjalo Holdings, though the bidder may face competition from a third party.

INM has been at crisis point for some time now, with chief executive Gavin Reilly stepping down from his position three months ago after a prolonged period of pressure from Denis O’Brien, the company’s largest shareholder and a critic of the firm’s management. This year Deloitte were appointed to undertake a strategic review of the business, which has a net debt of €426 million ($523 million). A figure  four times its earnings before interest, tax, depreciation and amortisation, and INM has been forced to issue two profit warnings this past year.

Vincent Crowley’s appointment as O’Brien’s replacement has signalled a big cost-cutting programme. So far Crowley has closed the INM head office in Dublin, launched a redundancy scheme at the Sunday World newspaper in Ireland and closed the INM headquarters in London. The group is expected to begin talks with its bankers this year over the refinancing of its debt.

This programme now looks set to include INM’s South African operation, which includes the Cape Times and Pretoria News newspapers and the largest property website in South Africa and accounts for a third of group revenue and half its operating profit, being sold. Hawkpoint and Investec are advising on the potential sale, proceeds from which would be used to pay down debt.

Last year the division reported revenues of €194.6 million ($239 million) and operating profit of €37.6 million ($46.2 million).

Sekunjalo Holdings, under the executive chairmanship of Iqbal Survé, has made an offer for this profitable division. The firm has investments in more than 70 private and public companies in Africa across a range of sectors, ranging from healthcare to telecoms, and is now looking to make its mark in the media industry by acquiring INM’s South African operations. Yet INM has so far been reluctant, saying it would continue to explore interest from other possible bidders. This suggests competition from a third party, with South African conglomerate Shanduka Investment Holdings, run by high-profile businessman Cyril Ramaphosa, widely viewed as being interested in the acquisition.