South African Firm Acquires BusinessDay
South Africa-registered Johnnic Communications Pty Ltd, with a 51 per cent stake in Business Day South Africa, has acquired a majority interest in Business Day Media Limited, publishers of Nigeria's BUSINESSDAY through its West African holding company, Johucom West Africa Limited. The management agreement between Johnnic Communications and its Nigerian publishing counterpart is with the aim of facilitating the expansion of both publications in core African markets.
Fifty one per cent of the equity in Business Day Media Limited was acquired by Johnnic Communications West Africa Limited, a joint venture between Johnnic Communications and Capital Alliance Private Equity, a Nigerian-managed entity. The remaining 49 per cent of equity in Business Day Media Limited is held by Nigerian investors.
This new frontiers being explored in African newspaper publishing has been commended by sponsors and principal executives from both entities as satisfactory. Mr. Connie Molusi, Group Chief Executive Officer of Johnnic Communications, enthused that "we now have the basis for a common publishing platfonn linking two vital African markets: that of South Africa and Nigeria. We will strengthen this linkage in the coming months to the benefit of consumers of business content in both countries."
Professor Pat Utomi, Chairman of Business Day Media Limited, said "The corporate combination is the beginning of transformation of how the continent receives, processes and uses inform.ation to build strategic advantage and attain the growth that should see poverty decline".
For Brian Pottinger, Chief Executive Officer of Johnnic Communications African Division, exciting new possibilities are now opened up for the development of a common readership in the two countries. According to Brian, "We will be concentrating on reinforcing each other in our respective markets and growing new markets across the continent."
Mr. Frank Aigbogun, Publisher and founder of Business Day Nigeria, said: "We are excited about this tie- up which reflects the rising confidence of foreign investors in Nigeria as a key market. With this partnership with a major player like Johnnic, we can now go on to build Business Day Nigeria into one of the world's best newspapers,"
Mr. Mzi Malunga, Managing Director of BDFM Publishers, owners of Business Day in South Africa, said that the partnership opened a new front for Business Day in South Africa and complemented its o ther v entures g eared t owards t he continental m arket s uch as B usiness Day Africa, a weekly digest of African news.
Analysts are of the view that the development is likely to engender some dynamism and robustness in business and financial journalism in the continent.
Meanwhile, the stage is set for a re-launch of the repackaged BUSINESSDAY on September 9, 2004.
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