Does the sell off start here ?
SA’s Business day reports that radio station owner and publisher Kagiso Media will sell its half of the South African operation of LexisNexis? back to its joint-venture partner, the local office of Anglo-Dutch multinational Reed Elsevier, for R565m.
Here at HOB we think that the report below may be papering over some cracks and suggest that Lexis might? not have been making them the revenues they though it would
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Who and where will the next Lexis sell off occur ?
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Here’s the? report
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http://www.businessday.co.za/articles/Content.aspx?id=155165
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LexisNexis is Reed Elsevier?s legal publishing division, whose brands include Butterworths.
Kagiso said yesterday it had originally offered to buy Reed Elsevier?s half of the South African operation of LexisNexis as part of its strategy of acquiring majority interests in its assets.
Reed Elsevier refused and offered instead to buy out Kagiso?s holdings in LexisNexis.
Kagiso CEO Murphy Morobe said last month, following the release of Kagiso?s results for the year to June, that the company had made a strategic decision to attain a 50%-plus shareholding in all its investments.
The company said yesterday: “The evolution of the company?s strategy has led to a change in its investment criteria as it became apparent that a more proactive approach to managing its assets would enhance value creation in the longer term.”
In terms of the deal, the money will be paid in cash and Kagiso will apply the proceeds from the disposal to other key projects.
Kagiso shareholders were advised that the relevant cautionary announcement was now withdrawn and caution was no longer required to be exercised when dealing in its shares.
LexisNexis has been described as a provider of content-enabled workflow solutions for professionals in the legal, risk management, corporate, government, law enforcement and academic markets.
Mr Morobe said last month that Kagiso was starting to see the benefit of a decision five years ago to reduce its dependence on advertising revenue, moving from a provider of content to a content owner. Kagiso a few years ago was highly dependent on broadcasting assets, LexisNexis and the exhibitions and events division.
