It was further announced that Kagiso Outdoor had concluded its first transaction by acquiring 50.1% of Clear Channel Merafe, formerly a joint venture between Clear Channel Independent and a consortium of black investors. Historically, Clear Channel Merafe's focus had been in the airport and rail advertising and is the biggest operator in the country's major airports.

MSG Afrika Media is a 100% subsidiary of black owned investment firm MSG Afrika Investment Holdings, led by Given Mkhari and Simphiwe Mdlalose.

Enhance media offering

According to Kagiso Media CEO Murphy Morobe, it had always been the strategic intent of the media group to enter the out of home media space. Morobe said, “The new venture will go a long way in enhancing our integrated media offering and in MSG we have found a team that shares a similar understanding and passion for the media business.”

Currently, Kagiso Media holds some of the most lucrative radio assets in South Africa and is involved in the publishing and exhibition businesses. Kagiso Outdoor will be the sole vehicle through which Kagiso Media and MSG Afrika Media will pursue outdoor media opportunities.

Clear Channel Independent, one of South Africa's largest outdoor advertising companies, is jointly owned by Independent News and Media (South Africa), a leading multimedia company with interests in newspapers, digital and magazines- and Clear Channel International.

Strategic options

Kagiso Outdoor will enable Kagiso Media to seriously position itself for more significant strategic options in its quest to establish a critical base in the outdoor media space. Kagiso Outdoor's acquisition of 50.1% of CCM places it on a strategic partnership footing with Clear Channel Independent, which owns the balance of the shares in Clear Channel Merafe.

Independent Newspapers & Media CEO and Clear Channel Independent chairman Tony Howard said that the Clear Channel Merafe transaction was an initial step towards a bigger relationship with Kagiso Outdoor that promised significant benefit for its own investment in outdoor advertising arena. He added that he was “very excited by the deal because Kagiso Outdoor is an ideal partner for Clear Channel in that it is led by the highly respected and established team of Kagiso Media, complemented by the fresh entrepreneurial spirit of MSG which together would provide the company with several unique opportunities”.

Kagiso Outdoor directors Murphy Morobe, Omar Essack and Given Mkhari will join the board of Clear Channel Merafe.

[17 May 2007 09:05]

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