THE largest institutional investors in Avusa — the Public Investment Corporation (PIC), Kagiso Asset Management and Coronation — confirmed on Tuesday they had opted to remain shareholders in the new listed entity Times Media Group (TMG).
Avusa shareholders had until Friday to decide whether to accept a cash offer of R24 per share, or 1.47707 TMG shares for every Avusa share.
"We are staying on. I think there will be significant value unlocked," Kagiso head of research Abdul Davids said.
Karl Leinberger, the chief investment officer at Coronation, also confirmed that his company would remain as an investor. Earlier reports had said Coronation would exit.
Other big investors remaining include UHC, Mvelaphanda Holdings and Old Mutual.
The exact shareholding of these investors is not yet clear as they have sold some shares. But the PIC is expected to be the largest institutional investor with close to a 20% stake.
New shares in TMG have been trading since last Monday, although it only officially listed on the JSE on Tuesday.
TMG shares ended down 1.72% to R14.25 on Tuesday.
However, the shares are trading about R2.75 higher than the debut price of R11.50.
TMG, formally known as Richtrau 229 — a Mvelaphanda Group subsidiary — is the new owner of media house Avusa.
TMG has appointed seven board members compared with the 14 Avusa had.
A process to allow for women representation and an independent chairperson on its board is also underway.
TMG is restructuring Avusa and is looking to drive more efficiencies in the group.
Cost-cutting measures include a smaller board and a reduction in head office staff. There also are moves to drive synergies between the Avusa titles.
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