Primedia concludes acquisition of KFM for R193m

In terms of the agreement reached with Nail, NAMH is to be restructured so such that its only asset will comprise NAMH's direct and indirect interests in KFM.

KFM is the number one adult contemporary music radio station in the Western Cape with over one million listeners, and which over the last five years has consistently increased its listenership turnover, earnings and cash flow.

The effective purchase consideration for NAMH will be approximately R193.8 million after taking into account cash flow adjustments to the purchase price in terms of the agreement reached with Nail. Primedia will fund the transaction with debt, which has been secured from a consortium of banks.

Commenting on the transaction, William Kirsh, Primedia CEO, said: "KFM is highly complementary to Primedia's activities in the broadcast sector. The acquisition will also materially advance Primedia's strategic objective of diversifying its media portfolio, making the group less reliant on any one asset for performance. This is due to the scale of KFM's profitability and cash flow and its consistency in performance"