Independent News & Media has received an offer for its South African newspapers. But INM is still hoping to attract a bigger bid, reports Ireland's Sunday Business Post.
In a piece published yesterday (not yet online), the paper said a consortium led by Iqbal Survé, who chairs Sekunjalo Investments (SKJ), has made a €240m (£188m) bid for the division.
Though that offer has emerged in public, INM is continuing with what it calls a thorough process to assess other potential interest.
There is also a possibility that the group could be split up with at least one private equity group showing an interest in acquiring the company's free titles.
But Survé's Sekunjalo appears to be the only concrete bid. He is described as a doctor, philanthropist and social entrepreneur. His group holds investments in more than 70 private and public companies in South Africa.
According to an anonymous source quoted in one of INM's papers, the Sekunjalo offer "has money and is bankable and it's underwritten by a global investment bank."
INM publishes leading titles in South Africa's main cities - including The Star in Johannesburg, The Cape Times in Cape Town, The Mercury in Durban and the Pretoria Times.
Its South African operations account for about a third of its revenue and half of its operating profit. Last year the revenues totalled €194.6m (£153.7m) while the operating profit was €37.6m (£29.7m).
It is possible that INM will answer questions about the divestment later this month at an emergency general meeting called to appoint new directors. A half-year financial report on the state of INM is also expected at the time.
INM is in negotiations with lenders over a possible refinancing of its debt, which now stands at €426m (£336m). It has a big pension deficit too.
Sources: Business Day/Business Report/Bloomberg Business Week/Sunday Business Post
