Mvela+CEO+promises+editorial+independence,+Business+Day



=Mvela CEO promises editorial independence=

The Bottom Line, 31 October 2007
Mvelaphanda Group (Mvela) has dismissed concerns that politician and businessman Tokyo Sexwale’s involvement in the company could infringe on editorial freedom at Johnnic Communications (Johncom), after it announced its intention to buy into the company yesterday.

Mvela said it intended to buy 25,1%-30% of Johncom’s media assets for R1,4bn from its largest single shareholder, Allan Gray, once these were listed on the JSE as a separate entity to be provisionally named Opco.

Mvela CEO Yolanda Cuba emphasised that Mvela’s commitments would be on the “management side” of the business and would not infringe on editorial aspects of any of its news brands. She said Mvela was dedicated to “ensuring that the editorial freedom enjoyed by Johncom be maintained”.

Mvela’s single largest shareholder, Sexwale, is running for president of the African National Congress (ANC) in December and Johncom owns significant newspaper titles including Sunday Times, Sowetan, Sunday World and 50% of BDFM’s Business Day, Financial Mail and I-Net Bridge.

Concern was raised that giving a presidential hopeful significant power over these brands would be inappropriate.

But during a teleconference yesterday, Cuba said Sexwale’s involvement in Mvela and his decision to run for president of the ANC would not stop the company from exploring valuable investment opportunities.

Johncom CEO Prakash Desai said the fact that Mvela had publicly emphasised its intentions not to involve itself in editorial matters gave the board “comfort” in this regard.

When asked, Cuba said there had been absolutely no participation in the deal by any of the ANC’s investment arms.

Mvela recently indicated its intention to buy into media assets in SA and this deal is its third this year involving that sector. It footed the bill for Isingqi consortium to acquire 25,1% of AltX-listed financial media company Moneyweb last month and also bought a stake in business magazine Maverick in March.

Johncom shareholders will vote today regarding the proposed name change of the listed entity from Opco to Avusa.


 * From: http://www.businessday.co.za/articles/bottomline.aspx?ID=BD4A600972**

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