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Guptas’ ANN7 and The New Age sold for R450m

The Gupta family has sold two of its flagship and most well-known South African entities, The new Age newspaper and ANN7 DStv news channel.

Oakbay Investments, the controversial family’s holding company, announced this morning that the two media companies have been sold to a company named Lodidox, which is reportedly owned by ANC member and former top official Mzwanele “Jimmy” Manyi, for R450 million.

Manyi is no stranger to controversy himself and is also known to be a friend and supporter of the Gupta family, often being featured as a guest on ANN7.

Both The New Age and ANN7 have been in news headlines for being involved in shady government-linked dealings.

During last year’s SABC Inquiry, it was revealed that the TNA Biz Brief, a platform for cabinet ministers to engage on various topics on the SABC programme, Morning Live, cost the public broadcaster millions in costs, without it receiving a cent back in revenue.

The New Age has also been pinned for receiving favourable distribution deals at airports and other public spaces and millions in advertising from government.

“The sale is part of Oakbay’s commitment to preserve jobs and provide certainty to over 7 500 hard-working employees throughout the group and to safeguard the inherent value of the businesses in which they work,” Oakbay CEO, Ronica Ragavan said in a statement.

“Under a new majority shareholder, Oakbay believes that both businesses and their employees will have the bright and prosperous future they deserve.  The sale will also allow the shareholder the time to focus on clearing its name in the face of unfounded media allegations.”

Oakbay has had a tough time ensuring the future of its companies and employees, after a number of local banks cut all ties with them last year, refusing to carry any Gupta-related accounts. It has also had to sell a few other companies off.

“We are delighted to have reached an agreement with Lodidox and the management team; the sale of our shareholdings will secure the future of these businesses and help preserve the jobs of their employees,” Ragavan said.

“I am delighted to have reached agreement with Oakbay and look forward to successfully completing the deal.  These are two strong businesses which are full of potential and, under the right external circumstances, can become an increasingly important and relevant part of the South African media landscape,” Manyi said.

“In addition, I am particularly impressed that the shareholders of Oakbay have agreed to do a vendor financing at acceptable terms as part of their commitment to transformation and to expedite the transaction.”

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