When Africa Media announced the separation of its paid and free services, subscribers in South Africa and the Middle East bought up 50% of the shares offered within 12 hours.
An investment partnership of Sheqafrica Corporate Services, SHEQ Community Development and Sheqafrica Consulting (Pty)Ltd has embarked on a massive drive to fund its free publication. Shareholders in the publication are given a package deal to earn revenue in both consulting and marketing and advertising.
The JV submitted a bid to acquire all of AM’s SHEQ related products and services. The shareholders who just started registration with the authorities, has made an offer to acquire a 90% stake over a 12 month period at a total cost of R1,2 million which includes a number of community magazines like PretoriaOnline and the BizOnline franchise. Other includes the Construction portal, SheqContractor and its products as well as ToolBoxTalk, the mobile app concept for OHS Awareness. The bid was subject to conditional waiver if the bid offer is not matched before the deadline. AM did not release the “condition” of the waiver, but it is most likely an extension based on counter offer.
The primary motivation for the offer is transformation in the OHS industry with Sheqafrica Community Services being kept exclusively for persons from designated groups. The Corporate Services company will take over Sheqafrica.com at the end of 2019, while the Consulting company will start operating at the end of March.
Africa Media will retain a 10% stake in exchange for free internet & hosting services to the JV.
The offer was made exclusively to Sheqafrica subscribers and no IPO is available at this time, but plans are to release an IPO in the 8th month of the 12 both bid period.
The transaction will not affect current agreements with any advertisers or Media Partners.
For more information on the offer, visit Sheqafrica.co.za