South African media company, Times Media Group (TMG) says it has acquired 49 percent stake in Kenya’s Radio Africa Limited in a deal worth $18.62 million, as it seeks to expand its operations in Africa.
“This can only be good news for everyone concerned,” Patrick Quarcoo, Radio Africa Group Managing Director said in a statement.
He added however that the new deal would not affect the staff as none would be laid off.
He also affirmed that nothing has changed in the running of the organization except for availability of more funds as a result of the deal.
Radio Africa Group is a major media player in Kenya, boasting of several radio stations, including Classic FM, Kiss FM, East FM, XFM and Radio Jambo. The group also holds a majority shareholding in the Star newspaper.
Chief Executive Officer (CEO) of TMG, Andrew Bonamour boasts of the company’s financial muscle, stating that cash resources were used to fund the Kenya deal, adding that there was more where money for the Kenya deal came from and a strong appetite to invest more in Africa.
“We now have exposure to fast-growing markets in west and east Africa and backing management teams in those countries,” said Bonamour.
TMG had in the past seven months been involved in broadcast-related acquisitions, spending over $33 million in the process.
The group bought a 32.26 percent stake in Multimedia Group, Ghana for $13.6 million. It spent $568,000 to buy a 65 percent stake in South African radio station Mpower (now called Rise FM) in December. It continued its investments in January, buying a 60 percent of another South African radio, Vuma FM for $2.4 million.