Capital Newspapers has hit back at Media24’s claim that it had rejected a counter-offer by Caxton for its media logistics business and four soon-to-be-closed newspaper titles because it was concerned about the group’s possible dominance in SA’s printing and publishing landscape.
The Naspers-owned media group is selling its media logistics business, On the Dot, and its community newspaper portfolio to Novus Holdings subject to regulatory approvals. Caxton made a competing offer for the assets.
In a letter, seen by Business Day, Riquadeu Jacobs, MD at Capital Newspapers, denied this assertion, saying: “It is necessary to formally refute these baseless, disingenuous and self-serving statements in the combined communication, which are designed to sensationalise your rejection of a bona fide offer, and attempt to shore up Media24’s precarious position in proposing to close numerous print titles at the expense of many journalists’ and employees’ jobs, and with the concomitant knock-on effects on the print industry as a whole.”
This comes after Ishmet Davidson, CEO of Media24, last week, said “selling the community newspaper portfolio to Capital Newspapers/Caxton will give them (direct and indirect) ownership of 76% of the community newspaper market in SA”.
In his letter, Jacobs lists several reasons why Media24’s “articulated position is sensationalist, incorrect, disingenuous and self-serving”.
According to the newspaper boss, Media24 “expressly invited Capital Newspapers to submit an offer for the On The Dot business and offered the Western Cape community newspapers as a sweetener as part and parcel of the transaction”.
“In other words, at the time that you invited us to bid for the assets, you clearly did not contemplate that there were any competition and/or public interest concerns associated with us purchasing the assets.”
In mid-June Media24 said it was seeking to close the print editions of five newspapers, transitioning three of them into digital-only brands, placing 400 jobs at risk. Print editions on the block are Beeld, Rapport, City press, Daily Sun and Soccer Laduma, as well as the digital editions of Volksblad and Die Burger Oos-Kaap and digital hub SNL24.
In a statement sent to Business Day, Davidson said: “As previously mentioned, there is no point arguing the details or the background and facts that underpin the proposed transaction or the proposed closures (subject to regulatory approval), in the media. Likewise, our decision to reject the offers received from Capital Newspapers/Caxton.”
“We have nothing to add to our statement of 18 July.”
“We also reiterate that we will be defending our proposal in a formally structured process at the Competition Commission where Messrs Riquadeu Jacobs and Paul Jenkins will likewise have an opportunity to state their views.”
Media24 has rejected Caxton’s advances, saying it will not renege on its agreement with Novus.
Still, the group is willing to entertain an offer from Caxton, or another party, only for the Beeld publication “in the interest of minimising potential job losses ... and keeping Beeld alive as a brand that carries sentimental value”.
This comes as the company appears to be shutting down two of SA’s best-known magazine publications: Drum and True Love, a fact that the Naspers-owned publisher has allegedly failed to disclose publicly.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.