NEWS

Gupta's Selling Price For ANN7 and TNA Is Reportedly Ten Times Too High

A valuation reportedly says Jimmy Manyi is paying far too much for the Gupta's media assets.

22/08/2017 06:22 SAST | Updated 22/08/2017 06:22 SAST
Siphiwe Sibeko / Reuters
An entrance to the ANN7 Television and The New Age newspaper offices, owned by the Gupta family, is seen in Midrand, Johannesburg, South Africa, April 14, 2016. REUTERS/Siphiwe Sibeko

The R450-million paid by Jimmy Manyi for ANN7 and The New Age appears to be too much, according to a valuation conducted two years ago, Business Day reported on Tuesday.

he valuation reportedly puts the value of the Gupta's media assets at about ten times less than what Manyi is paying for it.

Manyi is buying the company from the Guptas through vendor financing, which means the Guptas are lending him the money for the purchase.

In October 2015, accountants Cajee Razak & Associates reportedly conducted a valuation on Infinity Media Networks, the Gupta-owned company which owns the Gupta's media interests.

Valued on a fair market value, Infinity Media was reportedly valued at R52 million for the value of the business enterprise and R41 million for 100% equity value, Business Day reported.

Manyi told Business Day he was not concerned that he might have overpaid for the company, saying the valuation did not take into account the future prospects of the company. He reportedly said he would be "unapologetically" knocking on government's doors for more advertising revenue for the company.

"I am very confident that the radical economic transformation of government should benefit this. I am that radical opportunity for them. I want to increase our market share in the government space," he said.