JSE-listed Times Media Group (TMG), the owners of Business Day,  sold its Nu Metro Cinema division and advertising business, Popcorn Cinema Advertising Sales, for R75 million ($7m), it emerged late on Monday.

The media giant said this move was in keeping with its plans of exiting non-core businesses and becoming a fully-fledged media firm.

It sold these assets to Subcocept, a purpose built firm financially backed by private equity firm, One Fifty Capital.

TMG said R50 million ($4.6m) of the R75 million cash payment will be paid immediately once the deal gets in full operation.

The media firm said the other R15 million ($1.4m) will be paid at the end of the first year of the conclusion of the deal, while R10 million ($939, 000) will be paid on the second year.

Times Media will use the money to cut down on “acquisition leverage with respect to future acquisitions more aligned to TMG’s core business.”

Nu Metro is Southern Africa’s second biggest cinema firm, operating 17 cinema centres with 162 screens all over South Africa.

Popcorn Advertising sells on-screen advertising for Nu Metro and other major independent cinemas all over South Africa.